Crypto firms in the UK are dropping out from FCA registration

An increasing number of UK crypto firms are pulling out from FCA registration as scrutiny rises in the crypto sector, Reuters reported.

Last Friday the Financial Conduct Authority banned the largest crypto exchange, Binance, from conducting regulated activity in the UK.

An FCA spokesperson noted on Monday that the number of firms that abandoned their registration with the regulator has grown by a quarter. He added that Binance withdrew its application in the middle of May without providing any explanation.

Crypto firms in the UK are abandoning their FCA registration

Since January, crypto asset firms have had to register with the FCA, a measure designed to prevent money laundering and terrorist financing.

Regulators across the world have strengthen their oversight on cryotocurrency. They have expressed concerns with crypto assets such as Bitcoin because of its volatility and risk to consumers and potential for money laundering and other illegal activities.

Binance was targeted by other regulators around the world. On Friday Japanese regulator, the FSA, stated that Binance had been offering its crypto exchange services to customers in the country without ever having officially registered.

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