13 more crypto firms reportedly withdraw licensing applications in the UK
According to the report from Reuters, the number of withdrawn licensing applications from crypto businesses has increased by over 25% this month.
A spokesperson from the Financial Conduct Authority (FCA) quoted by Reuters said that 13 more companies have pulled out of the approval process bringing the total number of withdrawals to 64.
The FCA has been overseeing Anti-Money Laundering compliance for the country’s crypto sector since January 2020. At the time, the agency instituted a registration scheme for cryptocurrency businesses with an initial deadline of one year.
However, the FCA has been forced to create and extend a temporary registration regime amid a backlog of licensing applications.
Exiting the licensing process means that all these companies have to cease all crypto-related activities or risk incurring fines and legal action by the FCA. However, some companies not covered under the agency’s AML mandate might be able to continue offering services.
The agency has already issued a notice to U.K. consumers about 111 unregistered crypto companies in the country, earlier this June.
The withdrawn moves come amid increased regulatory scrutiny on crypto exchanges across several jurisdictions. The FCA itself has taken action against several major platforms including Binance.