Many cryptocurrency service companies and exchanges are pulling out their application forms from the UK’s FCA. The number of companies doing so has increased significantly, and as a result the UK is no longer one of the preferred crypto business jurisdictions. The official report on this was released by Reuters earlier.
A total of 64 companies have pulled their FCA applications, meaning that they no longer wish to apply for an FCA license.
The UK’s FCA forced all local crypto businesses to apply for an official license, however the whole regulation backfired as the process of acquiring a license turned out to be excruciatingly slow, which was one of the main reasons for which the FCA extended the period for application to 31 March 2022.
Only six cryptocurrency companies have been licensed ever since the FCA firs decreed its new firm decision.
Moreover, the FCA recently banned the sale of cryptocurrency derivatives to retails investors in the nation, while also banning the crypto giant Binance from operating in the country.
However, UK crypto demand is currently skyrocketing, with more than 2.3 million locals holding digital coins.
Meanwhile, earlier this week, Japan’s financial regulator Financial Services Agency (FSA) blocked local traders and investors from using Binance, stating that the company had been operating in Japan without a license.