A British financial regulator says that crypto companies still apply for licenses in the U.K. despite strict regulations. The Financial Conduct Authority (FCA) has asked many cryptocurrency companies to seek grants to operate in the U.K. According to the regulator,
“They know we have a good regulatory system, and if they meet our standards, it is important for jurisdictions that want to apply globally.”
FCA on U.K. Crypto Regulation
Cryptocurrency companies have been subject to stricter anti-money laundering rules. This is under the 2017 Money Laundering Regulations. Regulations include registration with the FCA.
Many applications have been rejected as part of the registration process. This is due to concerns about the financial crime system. It is also a warning to crypto investors who invest in any company.
Sheldon Mills spoke on cryptocurrency regulation at the City & Financial conference on Thursday. U.K. M.P.s and the crypto industry have criticized the country for its slow processing of license applications.
The system has rejected many applications, despite the government declaring that it wants to make the U.K. a global hub for crypto assets. It criticizes even the best financial regulators.
Mills explains that even with the harsh rules, cryptocurrency companies are not deterred by the strict licensing requirements.
Most have reapplied for licenses to operate in the U.K. even after being initially denied.
“While some companies were denied licenses on the first pass, it is not surprising to see many crypto companies still seeking licenses here in the U.K.”
This benefits the U.K. economy and the U.K. financial services industry. It is suitable for competition, investment, and growth. Mills added that 95 staff have been hired to join FCA’s licensing team and are pending. They noted a 40% decrease in the number of applications.
The FCA previously stated that 90% of cryptocurrency companies seeking licenses in the U.K. had not satisfied the standards. Even after the announcement, these companies have refused to withdraw their applications.
Crypto regulation will change in the U.K. under new Prime Minister Liz Truss. Several vital officials who previously worked on the country’s crypto policy resigned from the government before taking office.
FCA Urges Insurers to Protect Customers From ‘Unfair’ Penalties
The U.K. Financial Services Authority has sent a letter to chief executives of insurance companies asking them to ensure their customers are protected from unfair penalties and unnecessary products.
This is beneficial to the cost-of-living crisis. The FCA said it was concerned that some customers might cut the insurance they need amid rising energy prices and inflation. They are likely to be hit hardest by general rate hikes. Hikes will make them unable to make payments.
According to Sheldon Mills;
“Customers struggling with finances should contact their providers as soon as possible…We encourage customers to continue to shop around to find the best deal. Firms should not unfairly penalize them for payment difficulties but instead, work with them to find solutions.”
The U.K. will continue to adopt cryptocurrency. The country’s economy could thrive once proper regulatory methods are established. For now, regulation is in its baby steps.