Binance News: Cryptocurrency waters are starting to boil in the UK. After the ban on Binance, it was learned that many crypto money companies are preparing to leave the country. The aforementioned firms have also withdrawn their applications to register with the UK’s Financial Conduct Authority (FCA).
Crypto firms that have withdrawn their license application are on the rise
Crypto firms withdrawing license applications in the UK rose 25 percent in June, as reported by Reuters.
The crypto firm, which numbered 51, had withdrawn applications previously submitted for registration with the FCA at the beginning of the month. An anonymous spokesperson for the regulator told Reuters that the 13 companies were not interested in securing a license, which brought the total number of withdrawals to 64.
According to the FCA, crypto firms are starting to leave the country en masse following the move to ban the UK’s top crypto firm Binance for certain regulatory violations.
Companies not covered by AML will be able to provide services
Since January 2020, when the FCA launched a registration plan for cryptocurrency businesses with a one-year deadline, regulations began to tighten. Officials say they do this to ensure crypto firms comply with Anti-Money Laundering regulations.
The registration scheme seems to be a grueling process and the authorities had to abandon it with a temporary registration process. Reports also state that authorities are finding it difficult to keep up with the crypto firm registration as so many license applications have piled up.
It means firms have to withdraw their applications, cease operations in the country, or face regulations. Some other companies that are not covered by the agency’s AML authority will continue to provide services.