Cryptocurrency Community in UK On Verge of Shrinkage as FCA Deadline Approaches

Cryptocurrency innovation in the UK currently hangs on a balance as regulatory agencies fail to provide clarity on their ruling on crypto assets.

With the Financial Conduct Authority (FCA)’s deadline for approval fast approaching, reports show that many top crypto companies in the region are now considering fleeing to more hospitable jurisdictions for their operations. That said, the exit of top crypto companies could trigger a mass migration of the crypto community in the UK.

Only 33 UK Cryptocurrency Companies have Permanent Registration

Admittedly, the cryptocurrency market in the UK is currently largely unregulated. That said, crypto companies have been mandated to register with the FCA under the Temporary Registrations Regime (TRR) to comply with Money Laundering Regulations. Reports show that only 33 companies have obtained permanent registration with the FCA so far.

With only a few days left to the set deadline for this registration, crypto companies like Copper Technologies Ltd., digital bank Revolut Ltd., and others, which only have temporary registration, would be forced to cease operations if they fail to meet up.

Meanwhile, London-based crypto market maker B2C2 Ltd., crypto digital banking app issuer Wirex Ltd., and payments solution provider Trastra Ltd. pulled out of the temporary register last week. This withdrawal came following a warning by the FCA that companies using temporal authorization should either withdraw their application and suspend their operations in the UK or embark on the registration process properly.

That said, Wirex has assured its users that its withdrawal will not impact their activities. Meanwhile, Copper Technologies recently revealed that it was still in dialogue with the FCA but has established an entity in Switzerland to serve its UK customers even after a possible exile.