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The number of firms permitted to offer crypto services to U.K. residents under temporary registration status from the Financial Conduct Authority has dropped from 12 to 5.\u00a0<\/p>\n
According to a Thursday update to its list of \u2018Cryptoasset firms with Temporary Registration\u2019, the United Kingdom\u2019s financial regulator named CEX.IO, Revolut, Copper, Globalblock, and Moneybrain as companies in the crypto space allowed to operate in the country in addition to the 34 registered cryptoasset firms the FCA approved since August 2020. The FCA said on March 30 that it would be extending the temporary registration status for \u201ca small number of firms where it is strictly necessary,\u201d which included 12 companies at the time.<\/p>\n
In the United Kingdom, firms permitted to \u201ccarry out crypto asset activities\u201d must either be registered with the FCA or have been granted temporary status \u2014 originally set to expire in March 2022 \u2014 following a crackdown on AML and CFT compliance. In the last year, the FCA has ordered Binance Markets Limited to halt \u201cany regulated activity in the U.K.\u201d and issued a \u201cshut down or face further action\u201c order for local Bitcoin ATM operators. Many crypto firms withdrew their registration applications entirely.<\/p>\n
The change came following a Monday announcement in which HM Treasury said it would amend its existing regulatory framework to incorporate stablecoins used as a means of payment. According to the FCA\u2019s strategy for the next three years, it will work with the U.K. government to develop a regulatory approach to cryptoassets including stablecoins as well as crack down on \u201cproblem firms\u201d under its purview.<\/p>\n
\nIn line with our new Strategy and annual Business Plan, we plan to hire 80 new people to focus on removing more problem firms from the market faster. https:\/\/t.co\/efSdRG31cl<\/p>\n