Crypto companies operating in the United States, such as digital payment platform Wirex and cryptocurrency market maker B2C2, have withdrawn their registration applications with the UK’s Financial Conduct Authority (FCA).
FCA executive Sarah Pritchard said in a letter earlier this month that 85% of firms seeking approval from the regulator were unable to demonstrate that they met the required minimum standards.
Pritchard added that as part of the registration process, we uncovered significant failures related to key controls such as customer due diligence, risk assessment, transaction and ongoing monitoring (and) governance.
The FCA also suspects that the heads of some of the rejected crypto firms lack the experience and knowledge needed to run their businesses efficiently and securely.
Companies looking to do business in Britain have expressed dissatisfaction with the current system, which some leaders say places too much emphasis on scrutinizing individual companies rather than establishing a set of standards.
