A Rollercoaster for Crypto: The Current Landscape
The UK’s crypto scene has taken a nosedive recently as the number of firms permitted to offer services under temporary registration has shrunk from 12 to just 5. Users are left scratching their heads, wondering if their favorite crypto apps are the next to bite the dust.
The Chosen Few: Who Made the Cut?
Among the firms still standing after the recent regulatory cull are CEX.IO, Revolut, Copper, Globalblock, and Moneybrain. These companies have been granted the privilege to operate, even as the clouds of uncertainty loom over the crypto market. Meanwhile, 34 other crypto asset firms have managed to secure full registration since August 2020. Talk about a selective club!
Keeping the Crypto Fair: The FCA’s Crackdown
The Financial Conduct Authority (FCA) has been taking no prisoners lately. They originally set the deadline for temporary registrations to expire in March 2022, but they’ve decided to extend this for a select few. This extension is part of the FCA’s ongoing commitment to ensure compliance with Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) regulations. Last year, they issued directives that turned heads and raised eyebrows: Binance was ordered to halt all regulated activities, and Bitcoin ATM operators received shutdown orders. Yikes!
The Regulatory Framework Shake-Up
In a move that’s left many in the industry adjusting their monocles, HM Treasury announced plans to modify the existing regulatory framework, incorporating stablecoins as a payment method. Yes, you heard right! Not only does this broaden the scope of what’s regulated, but it signifies that the UK is serious about stabilizing its crypto landscape. It’s going to be a bumpy ride ahead, folks!
What’s Next for the Remaining Firms?
As for CEX.IO, Revolut, Copper, Globalblock, and Moneybrain, their futures remain uncertain under this temporary registration status. The FCA hasn’t disclosed a timeline for when these firms need to obtain full approval or whether they’ll face the dreaded rejection. The review period, which previously had been extended from July 2021 to March 2022, is still a mystery.
Conclusion: A Cautionary Tale
The UK’s cryptocurrency landscape is reshaping faster than you can say “blockchain.” As the FCA looks to eliminate problematic firms and strengthen its regulatory framework, it serves as a reminder to other firms seeking to enter the market. The door may still be ajar, but it’s flanked by stricter scrutiny and a host of challenges. Buckle up, crypto enthusiasts!
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