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To compensate for their inefficiencies, FCA extended temporary operation approval deadlines, allowing companies like Revolut and Copper to continue operating.
This is what happened
In 2019, the Financial Conduct Authority (FCA) of the United Kingdom issued a notice requiring all crypto firms to comply with their AML/CFT laws and obtain licenses by January 9, 2021.
This objective, however, was still far from being met by December 2020. As a result, the FCA created the Temporary Registration Regime (TRR) to allow crypto-asset firms that have already applied for licenses to continue trading. They also pushed back the date for compliance until April 1, 2022.
Many of the unregistered crypto assets businesses on the FCA’s list have shut operations after the release. While some people ignored the regulatory call, others applied and were turned down. Many companies who applied have openly expressed their dissatisfaction with the FCA’s strict requirements and have withdrawn their applications.
What is the extension?
The FCA issued another extension on the TRR on Wednesday, three days before the deadline, as the extended deadline approached and the pressure from lawmakers grew.
This extension was only applied to 12 companies that were acquiring their licenses (including Revolut, Copper, and blockchain.com’s crypto wallet). As a result, only these companies will be able to trade crypto assets as unregistered corporations in the future.
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FCA has triggered lawmakers
Although this extension may have prevented some crypto businesses from leaving the UK, MPs felt it was unnecessary because it only affects a tiny number of businesses.
Soon after the extension was announced, many Members of Parliament expressed their displeasure with it. The lawmakers were particularly enraged that the FCA was unable to meet its previously delayed deadline due to weak internal procedures.
MP Mel Stride, the chair of the Treasury Select Committee, said:
“It’s really disappointing to learn that the FCA has missed its already-extended deadline and I eagerly await a complete explanation for the delay.”
Lisa Cameron, Chair of the UK Parliamentary Group on Crypto and Digital Assets, backed Stride, saying:
“In terms of commercial certainty, the FCA’s lack of clarification has caused substantial challenges for firms.” We are now hearing about firms purposefully leaving the UK as a result of the FCA’s attitude, which will cost the UK in terms of employment, talent, and income.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
