FCA reports that 64 crypto firms have withdrawn operation applications

Recently, Binance got probed by the FCA to stop operations until getting approved. And now they have reported that till now 64 crypto firms have withdrawn operation applications in the UK. In that case, they won’t be able to offer any crypto-related services in the country. As the authorities have made registration mandatory for every company. The withdrawal might be due to the strict policies that FCA implements to judge if the companies must be approved. This is why only 6 companies were being able to register with the FCA until now.

Binance got restricted

Binance has recently been ordered by the FCA to stop operations in the Uk until they get a license or authorization. And this has even happened before when in 2018 Binance was probed by the FCA for a similar matter. At that time the company worked with the regulators to sort things out and continued its operations smoothly.

Good or bad?

In no way this is a bad thing. Exchanges getting regulated and checked before they start operations in the UK means there is a very low probability of users getting scammed there. This will also reduce the number of options users get to a limited by good and trusted platforms. Even the chairman of International Banking Law and Finance said that crypto regulation will be beneficial for the industry in the long run. We might see some price drops in the near future but a lot more investors will get in if the government regulates it.

What are your thoughts on the FCA reporting that 64 crypto firms have withdrawn operation applications in the UK? And what do you think is the reason behind that? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.

Also Read: Coinbase plans on releasing a crypto app store very soon