Despite its goal of becoming a crypto hub, the United Kingdom (UK). still strict with crypto regulations. Today, the UK the financial conduct authority announced the regulatory approval of crypto companies, and out of 300 that requested approval, only 41 were dismissed. Denied applications are referred to law enforcement agencies.
At FCA UK is a regulatory body focused on regulating financial markets and companies in the region. Regulators aim to protect consumer funds and ensure the legal and financial system. Due to its ability to authorize and monitor companies in the financial markets, the FCA has the upper hand to approve or disapprove the operations of crypto companies in the UK.
Many Apply, But Few Are Chosen
In particular, out of 300 crypto company registration applications received by the financial watchdog, only 41 applicants were selected. At the same time, several others were referred to law enforcement agencies for investigation of financial crimes or direct links to organized crime.
Sarah Pritchard, executive director of market surveillance, policy, and competition at FCAnoted in a letter to the Finance Select Committee:
Overall, in a small number of cases where we have identified the possibility of financial crime or direct links to organized crime we have referred this to law enforcement agencies. Some of those law enforcement investigations remain ongoing.
Furthermore, new cryptocurrency-focused regulation by the FCA, which crypto companies are developing to obtain approval, initially introduced two years ago on January 10, 2020, to monitor businesses operating in the sector and to ensure that they comply with the same Anti-Money Laundering (AML) and Counter -Terrorist Financing (CTF) regulation as a company in the traditional financial market.
Agreement Does Not Mean Exemption For Crypto
Although the FCA has not given any strong reasons for disapproving some applications, the regulator has opened some reviews that show that Response in “good and poor” applications. Part of the applications that are not approved include companies that use the application to promote their products and services, especially when the application process is still ongoing. The report noted:
The applicant’s website and marketing materials must not include language that gives the impression that an application for registration is a form of endorsement or recommendation by the FCA.
The report also disagrees with companies’ applications that cannot prove the use of “adequate blockchain compliance resources to monitor on-chain transactions.”
At the end of the note, the FCA emphasizes that approved companies are not exempted from their obligations. The FCA notes:
Applicants must acknowledge that registration is not a one-off formality or a tick box exercise without obligations or other interactions with the FCA.
The FCA also stressed that the disclosure of the feedback is to assist applicants when preparing their application for registration and to help “make the process simple and efficient.” As regulators continue to step into the crypto market, companies and projects in the sector have shown calm.
At the time of writing, global cryptocurrency market Its capitalization still remains above the $1 trillion mark, down just 0.3% in the last 24 hours.
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