64 other UK crypto companies are withdrawing their license registrations

Another 64 crypto-related companies have withdrawn their previously filed applications with the FCA. It seems that local and international crypto companies in the UK cannot meet the stringent requirements of UK financial regulators.

The UK Financial Conduct Authority’s (FCA) legal issue of crypto licensing is said to cause difficulties for crypto companies wanting to operate in the country. According to news from Reuters On June 29, the number of license applications withdrawn by crypto companies rose more than 25% in June 2021.

At the beginning of June 2021, 51 crypto companies withdrew the registration applications they had previously submitted to the FCA. An FCA spokesman added that 13 more companies have withdrawn from the approval process, bringing the total number of companies that have withdrawn their applications to 64.

The FCA has been monitoring compliance with the Money Laundering Act in the domestic cryptocurrency sector since January 2021. At that time, the agency established a registration system for crypto companies with an initial term of one year. However, the FCA was forced to create and expand a temporary registration system amid a backlog of license applications.

With the withdrawal from the licensing process, these companies will have to cease all crypto-related business. Otherwise, you risk fines and legal action from the FCA. However, some companies not covered by the AML mandate may still provide services.

Also in early June 2021, the FCA announced that 111 crypto companies are currently operating in the UK without registration. Recently, the FCA also issued a legal warning for Binance, one of the world’s leading cryptocurrency exchanges today. Binance withdrew its application to the FCA in May 2021.

In addition to the UK, regulators in Japan and Ontario, Canada have issued warnings for Binance.

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