UK Crypto Firms Registration Deadline Increased

UK Crypto Firms Registration Deadline Increased

The FCA has officially extended the waiting time for certain crypto firms to register with the watchdog, beyond the previous deadline which was set to the 31st March originally. Many are questioning the decision of the FCA to apply this statute to certain firms while ignoring others. Certain big names like Revolut and Copper startup will be allowed further time beyond the due date. Those not allowed will be denied a license.

The FAC released an ambivalent statement explaining why it has chosen to include some firms and not others, “This is necessary where a firm may be pursuing an appeal or may have particular winding-down circumstances.”

Since the original post some time ago proclaiming the deadline many crypto firms have voiced their concerns, with many withdrawing their FCA applications. Names like Wirex and B2C2 are among the top ones to withdraw their applications.

Furthermore, the Paysafe’s CEO Chirag Patel was honest about the whole process, commenting that the “U.K.’s registration regime will mean that a number of companies will inevitably need to exit the U.K. market because they are unable to meet the necessary standards in terms of risk and compliance,”

The controversy around this decision was met with backlash from many crypto participants, and have further complained about the FCA’s slow processes and its inability to speed things up with the applications. On its side, the FCA maintains that many firms are simply not meeting the requirements for a license, especially crucial ALM prerequisites. Since the inception of the decree, only 33 firms have been approved.

All crypto firms in the UK are required by law to register with the FCA, otherwise they wouldn’t be able to legally offer their services. In order to facilitate the move, the FCA has introduced a temporary register time frame in which companies can operate in the country while waiting approval.

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