200 Crypto Firms Applied to Register in the UK Over the Last Year
This rising trend seems to be going on after Elon Musk’s announcement that Tesla has increased its digital currency by $ 1.5 billion. Also, financial giants such as Mastercard and BNY Mellon have announced that they will begin to offer their customers the chance to use cryptocurrencies. This rising interest in cryptocurrencies from amateur enthusiasts to professional investors has caught the attention of regulators. It seems that companies are taking action to register for online exchanges as the control on the industry tightens in the UK.
Interest in Bitcoin and other digital currencies continues to increase rapidly around the world. It is known that controlling these currencies is much more complicated than different parities. For this reason, legal institutions seek ways to keep this market under control with the regulations they make. According to reports published by the UK’s Financial Conduct Authority, almost 200 cryptocurrency companies applied to the UK’s financial regulator to register over the past year. From Bitcoin ATM operators to online exchanges, these firms represent a wide range of sectors. Prominent financial firms such as Fidelity and Revolut are among the applicants and the smaller companies based in Oxford and Glasgow.
The UK Treasury Department had announced that crypto companies must register with FCA by January 2021 to ensure they comply with regulations made to prevent money laundering. The Financial Conduct Authority stated that it received 199 applications, with new rules coming into force as of January. The UK’s financial regulator has granted temporary approval to 102 companies that applied by July, which means that these companies can continue to serve their customers until the given time. It was announced that three different companies – Gemini, Archax, and Ziglu- have been officially approved so far.
Experts state that this development is a significant indicator for the ongoing adoption of Bitcoin and the cryptocurrency industry as the number of digital token investors and users grows worldwide. Analysts also clarify that, with high demand from consumers and growing interest from companies, the UK is very well positioned to take advantage of the Bitcoin boom. This regulation can be regarded as an inevitable move and reflection of the cryptocurrency industry’s increasing popularity. It will push other countries and institutions to provide mechanisms in adopting cryptocurrencies, particularly Bitcoin. Bitcoin price recently surged to above $50.000 that cannot be ignored by big companies, firms, and regulatory bodies.
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