51 Cryptocurrency Companies Withdraw Their License Application in the UK

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According to an announcement made yesterday by the Financial Conduct Authority (FCA), the British financial regulator, 51 cryptocurrency companies have decided to withdraw their applications for a license in the country.

Due to the tightening of the regulation of the crypto industry in the country, some companies simply believe they cannot meet all the criteria to receive the corresponding license that would allow them to offer their services legally in the country.

Notably, the FCA has reported:

“A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations. This has resulted in an unprecedented number of businesses withdrawing their applications.”

Yesterday we reported that the regulator had extended until March 2022 the temporary registration framework that allows crypto companies to operate while they wait for their permanent license (if eventually granted). However, in order to enjoy the benefits of this temporary license, they must have applied for the permanent license before December 16, 2020.

All the companies that have decided to withdraw their applications must stop all their operations immediately.