EU legislators rejected a plan to outlaw bitcoin mining in the union.
The FCA mandated that crypto service providers in the UK register by March 31.
If crypto firms fail to register with the Financial Conduct Authority (FCA) before a critical deadline, they might be compelled to close their doors in the United Kingdom. The Financial Conduct Authority, responsible for supervising how digital asset businesses prevent money laundering, has mandated that crypto service providers in the UK register by March 31.
To provide enterprises on a temporary register an extra year to get a full license, the regulator gave them an extension last year. This extension will expire this year. As a result of their failure to fulfil the FCA’s anti-money laundering rules, numerous crypto businesses have withdrawn their application.
Widely Criticized by Professionals
Revolut, a $33 billion fintech business, and Copper, a crypto start-up with former UK Finance Minister Philip Hammond as an adviser, are among the companies on the interim registry that face a deadline of only days. Industry professionals have widely criticized the FCA’s management of the crypto registry.
It is possible for companies that the FCA has rejected to appeal, but this procedure may be time-consuming and may even need a trip to court. Recently, President Joe Biden issued an executive order asking for government collaboration on digital currency supervision. At the same time, on the other hand, EU legislators rejected a plan to outlaw bitcoin mining in the union.
Representatives in the financial services industry worry that this might harm the United Kingdom’s chances of becoming a worldwide leader in financial innovation after Brexit. Over the course of last year, almost $12 billion was invested in the country’s financial technology sector.