Curiously enough is that they do it right before the registration deadline set for companies dealing with cryptocurrency.
According to the report published on 30th June, the interest in digital currencies from British citizens is growing. Thus, the number of those who dealt with them in one way or another amounts to 2,6 million people, which is 1,1 million more than last year. Such a significant increase proves the development of the cryptocurrency market in the country.
The report also states that 2,681 are aware of the lack of regulations and the risks they take while dealing with cryptoassets, while the other 300,000 are exposed to financial harm as they think they have protection from the government. Thus, the latter fact proves the necessity of regulations and reasonability of the imposed registration procedures.
The deadline has expired
The 30th June was also the last day for submitting registration applications by businesses dealing with cryptocurrency.
Last week, the FCA published a notice to remind that all firms having started their operation within the UK prior to 1st January 2020, have to register within the regulator to continue their operation after 1st January 2021.
Such a deadline was set in order to ensure that all applications are reviewed and approved by 1st January 2021. As the process is quite complicated and requires a lot of information submitted, the review might take time. Besides, businesses might need to improve their applications due to potential mistakes made during the first submission, which also take time.
Nevertheless, it doesn’t mean the companies won’t be able to submit applications after this date. However, late submission might cause a delay, resulting in the application not being reviewed on time, forcing a company to cease its operation within the UK.
Too trustful of advertising
Another fact revealed by the FCA research showed that most cryptocurrency users came to the market by advertising, which denotes a high level of trust to advertising in general.
Considering the surge in various scam projects luring people to trick them out of their money, this might also prove the need for regulations in order to protect people.
Generally, FCA makes their best efforts to raise people’s awareness of various scam projects and teach them to tell legitimate companies from fraudsters. They have also published guidelines and tips aimed at teaching people how to protect themselves and not to lose their money.
The registration requirements would allow the FCA to strengthen the control over the cryptocurrency industry and ensure only legitimate businesses enter the British market.
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