Sixty-four crypto firms withdraw registration applications in the UK

Against the backdrop of tighter scrutiny of digital assets, an increasing number of crypto firms are withdrawing their registration applications with the UK’s Financial Conduct Authority (FCA). Reuters reports, citing the regulator.

According to the FCA, in June the number of organisations that withdrew registration applications rose by 25%. At the start of the month the regulator counted 51 such companies — now there are 64.

As of writing, six companies are listed on the FCA register. Applications from more than 80 organisations are still under review.

A regulator’s spokesman told the publication that Binance had withdrawn its application in mid-May, without providing further details.

On 26 June, the FCA banned the British arm of the Bitcoin exchange from engaging in any regulated activity without prior written approval from the regulator.

A Binance spokesperson said the company is working closely with regulatory and law enforcement authorities “to enhance the safety and resilience of the sector, delivering better services and protection for users.”

Earlier, Mark Steward, head of enforcement and market oversight at the FCA, said that more than 100 unregistered firms operate in the UK. In his words, such activities threaten the financial system.

“We have a number of firms that are clearly conducting business in the United Kingdom without our authorisation. They work with banks, payment service providers, and consumers. This is a real risk, which is why we are concerned about this matter,” he said.

In December 2020 the FCA introduced a temporary registration regime for crypto firms awaiting regulator approval. It was intended to last until 9 July 2021.

In June 2021 the regulator extended the regime to 31 March 2022. The FCA said the move would allow crypto-asset firms to continue operating while the Authority conducts a thorough assessment.

According to the FCA, over the year the number of cryptocurrency investors in the UK rose from 1.9 million to 2.3 million.

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