As worldwide monitoring of the rapidly expanding industry increases, an increasing number of crypto asset companies are abandoning efforts to register with the UK’s financial authority.
On Friday, the Financial Conduct Authority (FCA) barred Binance, one of the world’s largest cryptocurrency exchanges, from performing any regulated activity in the United Kingdom, as authorities across the globe tighten their grip on the industry.
An FCA spokesman stated on Monday that the number of registrations that have been canceled has increased by a quarter in less than a month and that Binance withdrew its application in mid-May without providing more information.
Since January, crypto-related businesses have been required to register with the Financial Conduct Authority (FCA), which monitors compliance with legislation to prevent money laundering and terrorism funding.
Only six businesses have signed up, with hundreds more being evaluated but not yet declared “fit and suitable.” According to the spokesman, 64 people have withdrawn their applications, up from 51 in early June.
A representative for Binance refused to comment but said the company works closely with authorities and law enforcement “to advance the industry’s security and sustainability while offering the greatest services and protection to our users.”
The potential for cryptocurrencies like bitcoin to be used in money laundering and other criminal activities, as well as possible consumer hazards, are among the regulatory concerns.
Binance, led by Canadian Changpeng Zhao, is one of the most influential cryptocurrency exchanges. Its services include everything from digital token trading to derivatives, as well as cutting-edge technologies like tokenized stock versions.
Its regulatory framework, on the other hand, remains a mystery.
Binance is “decentralized,” according to its spokesman, who refused to disclose where its holding company is located.
Regulators from all around the globe have been targeting Binance in recent months.
According to a warning issued on the website of Japan’s Financial Services Agency on Friday, Binance was operating unlawfully in the nation.
The FCA is coordinating with other major authorities, particularly in the United States and Asia, according to Alpay Soytürk, compliance head of Spectrum Markets, a securitized derivatives trading venue.
Bitcoin, which has lost almost 18 percent in the past 13 days as China tightens regulations on the cryptocurrency industry, has brushed off the FCA decision and is now up 0.3 percent at $34 767. The Financial Undertake Authority (FCA) stated in a notice dated Friday that Binance could not conduct any regulated activity in the United Kingdom and cautioned customers about the platform, which is under increasing scrutiny worldwide.
Binance, one of the world’s largest cryptocurrency exchanges, withdrew an application to register with the Financial Conduct Authority (FCA), which monitors anti-money laundering regulations, last month, according to a spokesman for the watchdog. He refused to explain why.
A spokesperson for Binance declined to comment on the company’s interactions with the FCA. Binance, he added, works closely with regulators and law enforcement “to advance the industry’s security and sustainability while offering the greatest services and protection to our users.”