CryptoUK, a British commerce physique with greater than 50 cryptocurrency corporations, has written to HM’s Chancellor of the Exchequer, Rishi Sunak for his intervention in expediting the method of necessary crypto enterprise registration in the UK.
Reported by The Block, the letter was dated March 15 and the physique’s chair, Ian Taylor complained over the unresponsive nature of the Monetary Conduct Authority (FCA), which is accountable for the anti-money laundering registration course of.
Moreover, he questioned the monetary market regulator’s experience on cryptocurrencies and identified that the delay is inflicting many UK-based crypto corporations to shutter or go away the nation.
“In each instances, it is a unfavourable outcome for the UK financial system and its fintech group. This goes towards the federal government’s mandate to advertise and encourage competitors and enabling innovation to thrive,” the letter signed by Taylor famous.
Many Crypto Firms Are in Limbo
The UK regulator mandated the registration of all cryptocurrency corporations working inside its jurisdiction earlier than the deadline, which was initially set at January 10, 2021. Nonetheless, as a result of backlog created by the Coronavirus, it granted momentary aid to the businesses which have utilized for the registration as it’s nonetheless evaluating the functions.
Whereas the FCA accepted a couple of corporations like Gemini and Archax, the destiny of greater than 150 corporations was in limbo by the tip of final 12 months.
The letter outlined that a few of the crypto corporations have been ready for a regulatory response for eight months whereas there are additionally points with case officer assignments.
“The clock is once more ticking as we method the brand new July deadline, whereby present corporations legally need to stop buying and selling,” additionally included within the letter. “Moreover, lots of of recent companies have been ready for months to progress their functions, with workers and overhead prices mounting as they can not begin buying and selling and incomes revenues till their software has been accepted.”