At the beginning of June, 51 crypto companies have already withdrawn their licensing applications because of their failure to comply with UK’s rigid crypto standards. Today, 13 more have withdrawn their application due to the same reason.
With the increasing number of crypto companies that are walking out on the application line, the United Kingdom Financial Conduct Authority proves that its strict policies are not selective and apply to all companies.
Reuters have reported recently that crypto companies who have withdrawn their applications in the UK have increased by over 25% just this June.
Anti-money laundering efforts
As early as January 2020, Britain’s Financial Conduct Authority has been implementing stricter guidelines on crypto companies to better curb the country’s money-laundering incidents.
The regulatory body has originally given crypto businesses a one-year deadline to comply with the requirements but was later forced to extend it because of the application backlog.
Crypto companies who have officially withdrawn their applications are required by FCA to stop their crypto services in the country.
Businesses who are found to continue providing services related to cryptocurrency after withdrawing their application would immediately face legal actions and hefty fines.
Crypto exchanges face scrutiny
Crypto exchanges are not new to “sticky” situations with various governments, given that their business centers around finances. But if there is one crypto exchange that seems to have garnered the most scrutiny from different governments, it would be Binance.
For the past few weeks, Binance has been entangled with legal battles in different countries which include Japan, Canada, and the UK due to alleged irregularities. The crypto exchange giant has formally withdrawn its license application in the UK last May.
Image courtesy of Cointelegraph News/YouTube
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