FCA spares UK crypto firms from ejection by waiving key deadline
The Financial Conduct Authority (FCA) has relented on a requirement for crypto asset firms in the UK to attain a final decision on approval by 31 March.
The City Watchdog has intervened at the 11th hour to allow firms who are appealing the regulator’s decision or have unusual wind down requirements to continue trading on its temporary register.
Some of the UK’s biggest crypto players including Copper, Revolut and Blockchain.com are still registered under the FCA’s temporary regime creating considerable uncertainty for the industry as the deadline for attaining approval approached.
“We have concluded our assessments, and the TRR will close on 1 April, for all but for a small number of firms where it is strictly necessary to continue to have temporary registration,” the Financial Conduct Authority confirmed. “This is necessary where a firm may be pursuing an appeal or may have particular winding-down circumstances.”
Twelve firms were trading on the FCA’s temporary register with a number of the companies announcing their plans to withdraw from the UK and seek regulation elsewhere.
Most recently Wirex confirmed that it would continue serving its 250,000 UK customers from a new base in Croatia. Global Block, a digital asset broker, last month said it would seek registration in Lithuania.
Only 33 crypto asset firms have secured full approval from the FCA with 80 per cent of applicants withdrawing their applications or facing rejection.
Read more: Top crypto firms face ejection from UK as FCA deadline looms