Crypto companies are dropping their bids to register with the FCA while NatWest limits its clients’ amounts towards them.
As many as 50 firms related to digital currency trading can be forced to cease their operations in Great Britain. The FCA requires them to register under the Temporary Registrations Regime (TRR), starting from July 9 until March 31. The TRR aims to become a bridge between crypto businesses and anti-money laundering rules.
It is estimated that only six out of 90 firms have been registered and admitted by the Financial Conduct Authority. At the beginning of June, 51 of these companies had already withdrawn their applications. That number has now increased to 64. Those that won’t complete the registration might have to shut down their platforms and face heavy fines.
The news comes just a few days after Binance, the largest virtual currency exchange platform by trading volumes, was banned from the watchdog. Starting from June 30, the exchange platform must add a notice in a distinguishable place on its official webpage stating the firm ‘is not permitted to undertake any regulated activity in the U.K.’.
“Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. (No other entity in the Binance Group holds any form of U.K. authorisation, registration or license to conduct regulated activity in the U.K.”
Another restriction was published on the news today. NatWest, a British bank, has temporarily limited the amount of money its clients can spend on virtual currencies. The bank is concerned about scams and illegitimate transactions. NatWest will also block transactions towards exchanges that were in some way related to fraudulent activity.