- UK’s Financial Conduct Authority announced that 199 crypto-based firms had applied for a license
- Firms have to register with the FCQ before operating in the UK
Industry giants like Fidelity and Revolut are amongst the 199 firms jostling for a spot
- Temporary approval has been granted to 102 firms while 3 firms have been granted full approval, says the FCA
Nearly 200 crypto-currency firms threw in their application to be accredited as legitimate bitcoin trading companies.
The UK’s Financial Conduct Authority (FCA) tightened restrictions in the sector and made it a requirement that must be fulfilled before companies begin operating in the sector. The firms came from a cross-section of online exchanges and Bitcoin ATM operators.
Get Licensed or Go Home
Britain’s leading financial regulator, the Financial Conduct Authority has made it compulsory for firms operating in the UK to file an application to be fully accredited. This is coming on the heels of Bitcoin’s and other cryptocurrencies being too volatile for a stable investment platform.
Furthermore, the rise in money laundering cases has made it imperative for the FCA to ensure that all crypto firms comply with the existing rules and regulations against money laundering.
Since the announcement, 199 firms have placed their application for a license with the regulatory agency. The 199 firms are drawn from several sectors of the crypto-currencies industry including online exchanges, mining companies, and BTC ATM operators.
Currently, the FCA has granted temporary approval to 102 of the companies that applied earlier meaning they can keep operating pending a permanent approval.
On The Flipside
- Scammers have taken advantage of the widely unregulated and decentralized market to siphon millions of dollars in crypto assets
- Analysts warn that government interference in crypto-currencies may rob it of its anonymous, decentralized nature
- This is the same approach taken by France in the regulation of the crypto industry
Bitcoin’s Boom Is Hard To Miss
BTC’s meteoric increase in price has seen it shatter new highs. Recently, the world’s largest cryptocurrency hit a record $50,000 and these gains have certainly attracted the eyes of regulators. Early in February, Elon Musk, CEO of Tesla plunged $1.5 billion in purchasing Bitcoin and his tweets about Dogecoin has set-off a major price rally.
Furthermore, Mastercard and BNY Mellon have rolled out elaborate plans to incorporate crypto-currencies on their platform. All these have seen BTC gain over 70% increase since the start of the year.
These staggering numbers have attracted the eyes of regulatory agencies stepping in to exercise a modicum of control over the decentralized market. Jonathan Roland, CEO of Mode in an interview with Insider said figures are a reflection big the massive adoption of BTC globally.
He said the UK is well-positioned to take advantage of this crypto renaissance. However, UK’s Financial Conduct Authority has warned that investors could lose all their money with BTC and other crypto-currencies plunging to almost zero.