Crypto Firms Are Fleeing U.K Ahead of FCA’s March 31st Deadline

Published by
Crypto Firms Are Fleeing U.K Ahead of FCA’s March 31st Deadline

On Thursday, March 31, U.K’s top financial regulator – Financial Conduct Authority (FCA) – shall be ending its Temporary Registration Regime (TRR) for crypto businesses. Thus, companies that follow the registration criteria won’t be allowed to continue their operations.

As of March 25, only 33 companies have managed to register with the FCA. Other 12 companies are still on temporary registration including big names like Blockchain.com and Revolut. Thus, registering with the FCA seems to be a huge task for crypto firms.

Amid solid retail participation in crypto over the last two years, the FCA has taken a tough stand. Some of the U.K’s top financial authorities such as the central bank and the Treasury have initiated tough measures while stepping up scrutiny.

While the FCA can extend its deadline later to June 2022, some companies have already started moving operations abroad in order to be able to serve their U.K. customers. Last week, six companies including popular names like B2C2 Ltd. and crypto digital banking apps Wirex Ltd. fell off the temporary registrar.

B2C2 said that all spot trading of crypto assets shall be handled by its U.S. entity. Another spokesperson of Wirex said that it will be offering services to its U.K. customers through its Croatian subsidiary Wirex Digital.

The FCA has given a strong warning that companies not meeting its benchmark requirements can choose to withdraw their application.

Is U.K Falling Behind Europe In Framing Crypto Regulations?

London-based crypto custodian Copper is now making parallel plans to gain regulatory approval in Switzerland. Although Copper continues its dialogue with the FCA, it still hasn’t received any verdict on the full registration from the FCA.

Former U.K. Chancellor of the Exchequer Philip Hammond who serves as a senior advisor to Copper said that it was “frankly quite shocking” that the U.K. has fallen behind other financial hubs such as the European Union in setting regulatory clarity for crypto. He said that such behavior can see talent fleeing out of the country.

However, the interesting this with FCA’s registration is that non-domiciled companies are better to serve U.K. customers than those going through the registration process. Some of the world’s biggest crypto firms are still serving in the U.K without FCA registration since they can facilitate trading from overseas. Blair Halliday, head of U.K. operation at Gemini said:

“I’ve had emails from other companies telling me that they’ve just spun up a business in whichever jurisdiction, and that’s the entity that will be servicing U.K. consumers. Our concern with any legislation is where it unfairly impacts firms going about it the right way in jurisdiction, and by definition, drives customers to an easier location off-site. That’s a potential byproduct of some of these proposals — how on earth can that be a positive?”

The U.K’s FCA has also recently warned crypto firms advertising in the country.

Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

World Liberty Financial Discloses Reason for Blacklisting 272 Wallets

World Liberty Financial (WLFI) has confirmed that it blacklisted 272 wallets and explained why it…

September 6, 2025
  • 24/7 Cryptocurrency News

September 50 BPS Fed Rate Cut Odds Climb Ahead of CPI, PPI Data

Traders are beginning to price in the possibility of a 50 basis points (bps) Fed…

September 6, 2025
  • 24/7 Cryptocurrency News

Michael Saylor Spotlights Strategy’s Performance Following S&P 500 Snub

Michael Saylor highlighted Strategy’s outperformance after the company was excluded from the S&P 500. The…

September 6, 2025
  • 24/7 Cryptocurrency News

Donald Trump Shortlists Hassett, Warsh, and Waller for Fed Chair

U.S. President Donald Trump has revealed his shortlist of candidates who could potentially replace Fed…

September 6, 2025
  • 24/7 Cryptocurrency News

Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes

Ethena Labs has secured fresh funding from ArkStream Capital as it expands its ecosystem in…

September 6, 2025
  • 24/7 Cryptocurrency News

SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes

The U.S. Securities and Exchange Commission has launched a task force designed to tackle cross-border…

September 6, 2025