UK watchdog rejects criticism over cryptocurrency licensing and rejections. – Democrat Blog

UK watchdog rejects criticism over cryptocurrency clearances

Crypto firms have not been deterred by the initial failure to obtain permissions to operate in Britain and are submitting new applications, the Financial Conduct Authority said on Thursday.

The FCA has been criticized by lawmakers and the cryptocurrency industry for being slow to process license applications and for rejecting many applicants despite the UK government’s efforts to make London a global cryptocurrency hub.

“It’s no surprise that many cryptocurrency companies are still seeking licenses here in the UK, even though some of them have been denied these licenses on the first pass,” said Sheldon Mills, FCA’s Executive Director for Competition and Consumers, speaking at a City & Financial conference.

“They know we have a good regulatory system and that if they meet our standards, that’s important to all the jurisdictions they seek to address around the world,” Mills said.

“It’s good for the UK economy and financial services sector, and it’s good for competition, inward investment and growth. »

Crypto businesses are scrutinized by the FCA for their ability to prevent their operations from being used for money laundering or terrorist financing.

In March, the FCA said that 90% of cryptocurrency firms seeking approval for their anti-money laundering controls either withdrew their application or were denied because they could not meet the standards.

Mills said 95 people have been hired into the watchdog’s permissions team and the backlog has dropped by 40 percent.

“Over time, we hope that faster and better decisions will help us reduce the costs of the regulatory system,” Mills said.

Jean-Marie Mognetti, managing director of crypto asset manager CoinShares, said the company chose to list in Sweden, a member of the European Union, because Britain and the FCA don’ were “not very keen” on seeing cryptocurrency companies in London.

Mognetti said the European Union’s new set of “MiCA” rules for full licensing of crypto businesses will put the EU in an advantageous position over Britain.

“If you talk about attractiveness from the point of view of a regulated activity. [perspective]the fact that London is not part of MiCA and does not have a passport in Europe… is going to be a huge handicap,” Mognetti said.

According to a bill currently before Parliament, Britain will license stablecoins, but leave the rest of the cryptocurrency industry for a later date.

(Except for the title, this story has not been edited by staff and is published from a syndicated feed).

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UK watchdog rejects criticism over cryptocurrency licensing and rejections. – Democrat Blog

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