The world of cryptocurrency has received a lot of attention in recent years, which has created a lot of debate over the regulation of crypto-related enterprises. The Financial Conduct Authority (FCA) is the primary regulator of cryptocurrency enterprises in the United Kingdom. Almost 300 blockchain-related enterprises have registered with the FCA since the beginning of 2020. They wanted to obtain permission to operate legally within the country. However, only a small proportion of these applications were successful.
Only 38 applications were approved out of all those received by the FCA. This is a very small proportion of the total, approximately 13%. This means that not all crypto firms seeking to operate in the UK will be granted permission. The FCA has a set of criteria and requirements that these companies must follow in order to be approved. These are quite difficult to overcome, which is why not many organizations can really gain clearance to operate.
The FCA’s responsibility is to ensure that cryptocurrency firms follow particular rules in order to avoid problems such as money laundering. Companies who want to provide crypto services in the UK must either register with the FCA or obtain temporary authorization. The FCA wants to ensure that these businesses are open and trustworthy.
NEWS: 📈🚨Stats show that almost 300 #blockchain-related enterprises have applied to register with the FCA and only 38 have been approved.
— Walletor (@walletorapp) August 14, 2023
The same well-known names have appeared on the FCA’s list of registered cryptocurrency providers. This includes well-known names such as Gemini. However, not all businesses were as fortunate and did not match the institution’s requirements. We trust they are working to meet those requirements. Due to FCA pressure, several companies, such as Binance Markets Limited, were forced to cease operations in the United Kingdom.
Conclusion
Finally, the FCA’s involvement in regulating crypto firms in the UK is critical. It’s evident that the FCA is picky about who obtains permission to operate in the country’s cryptocurrency industry. This contributes to the preservation of transparency and security in the continuously expanding world of cryptocurrencies.
