It has been revealed that 13 additional crypto companies in the United Kingdom have withdrawn their applications for licenses due to certain requirements imposed by banking regulators.
According to reports, the United Kingdom Financial Conduct Authority's (FCA) crypto licensing process is proving difficult for cryptocurrency companies wanting to operate in the nation.
Per a Reuters article published on Tuesday, the number of withdrawn license applications from cryptocurrency companies jumped by over 25% in June.
About 51 cryptocurrency businesses have already filed registration applications to the FCA. An FCA official quoted by Reuters revealed that 13 additional businesses have withdrawn from the licensing process, increasing the total number of withdrawals to 64.
Since January 2020, the FCA has been in charge of the country's cryptocurrency sector's anti-money laundering compliance. The agency established a one-year registration deadline for bitcoin firms.
However, because of a backlog of license applications, the FCA was compelled to establish and prolong a temporary registration system.
By abandoning the licensing procedure, these firms risk facing penalties and legal action from the FCA. However, certain businesses that are not subject to the AML mandate of the agency may be allowed to continue operating.
Earlier in June, the FCA issued a warning to UK customers about 111 unregistered cryptocurrency firms in the nation.
The flurry of withdrew applications coincides with heightened regulatory scrutiny of cryptocurrency exchanges in several nations. The Financial Conduct Authority (FCA) has taken action against many key platforms, including Binance.
And it has been speculated that Binance withdrew its license application in the United Kingdom in May, due to this very reason.
According to Yoni Assia, CEO of trading platform eToro, state authorities should take even more regulatory steps against industry participants. However, eToro's CEO encouraged regulators to broaden their understanding of the cryptocurrency industry to develop more sophisticated rules.