The UK's Financial Conduct Authority (FCA) has recently shut down its Temporary Registration Regime (TRR) just a week after approving the crypto-friendly payment platform, Revolut.
The financial regulator initiated the TRR program to allow crypto businesses to operate in the country while awaiting complete regulatory approval from the agency.
According to a recent report, however, the FCA has decided to shut down this program and requires that every crypto company seeking approval from UK regulators must go through the full registration process provided by the agency.
Crypto Firms Exit TRR List Amid Multiple Delays
The FCA created the TRR program in December 2020 as part of plans to improve the regulatory landscape of the UK crypto market. The regulator saw more than 100 crypto firms enter the list shortly after the program started.
However, only 38 of these companies managed to receive approval from the FCA to operate in the UK. Numerous other crypto firms, however, dropped out of the TRR process, complaining about the FCA’s delays in processing applications.
The regulator said in an email, "If a firm is able to satisfy us that it meets the conditions for registration, we will register them. It’s a two-way street, so the time it takes to register a firm, and whether they’re registered at all, depends on the quality of the information provided to us. Thirty-eight firms have successfully done so."
While the FCA had set a deadline for companies on the TRR list to get full approval by March 31, few companies were allowed to remain on the list past that deadline. By 8th April, about five companies, including Revolut, CEX.io, Moneybrain, GlobalBlock, and Copper.co, were still operating in the UK under the protection of the TRR program.
The financial regulator did not provide specific details on why it extended the due date for some companies. The FCA, however, pointed out that these companies may have been pursuing an appeal or had "particular winding-down circumstances."
By the end of June, Revolut was the only firm remaining on the list as the other four companies had withdrawn their application and opted to apply for licenses outside the UK, citing delays. Revolut ended up being the only firm to receive approval from the FCA, ending the TRR program.
According to GlobalBlock's CEO, Rufus Round, the company dropped from the process after over 18 months because it felt the FCA was "not ready" for crypto companies at that point.
The UK government has expressed its desire to turn the country into a global cryptocurrency hub. As part of its efforts to achieve this goal, the UK government has made several legislative proposals and hosted multiple initiatives to hear the opinions of crypto experts.
Still, without clear crypto regulation in the country, mainstream adoption of digital assets in the UK has remained low as a whopping 64% of Brits point to murky regulations as the major reason for not investing in crypto.
usdt
sol