As per the recent reports, it has been revealed that the Financial Conduct Authority (FCA) from the United Kingdom has issued temporary licenses. These temporary licenses have been issued for the crypto-firms that are trying to start their operations in the United Kingdom and require a license to do that.
It was informed that the Financial Conduct Authority (FCA) also released a list of the new crypto-firms that will be issued with a temporary license. However, the list released by the FCA for the firms getting the temporary licenses has caused a lot of confusion. The confusion comes from the firms that are either planning to apply for the license or have already applied for them.
While the new crypto-startups in the United Kingdom were already confused over the latest list, FCA made things even more confusing for these firms. The Financial Conduct Authority (FCA) announced that the deadline for the crypto-firms for to acquire the license is January 21, 2021.
Following the announcement, the FCA has made it crystal how things will be for the crypto-firms once past the deadline. It has been cleared that if a crypto-firm fails to acquire the license by the deadline will not be allowed to operate in the United Kingdom. Moreover, if an already established cryptocurrency firm in the United Kingdom is operating without the license will be counted among the same.
Once the deadline has is reached, the crypto-firms will no longer be able to manage or deal in crypto-assets in the United Kingdom.
The Financial Conduct Authority (FCA) also confirmed that it had made the first announcement around the same case at the beginning of the year 2020. At that time, the FCA instructed all the crypto-firms to submit their applications for the acquisition of the license by July 31, 2020.
The Financial Conduct Authority (FCA) also clarified why it had allocated so much time for the execution of the licensing plan. The main goal was it would allow the cryptocurrency firms to get themselves familiarized and acquainted with the requirements and laws of the FCA.
The Financial Conduct Authority (FCA) stated that the process of applying for the crypto-trading license would not be difficult. It confirmed that its application process is similar to other processes that FCA currently has in place.
However, in the application form, the FCA has remained focused on software-based and technology-based questions. As far as the advanced questions were concerned such as KYC arrangements and transactions management, the FCA made them easier for the users. The FCA did this for the users who use pre-made software for managing such activities.
Unfortunately, things have not turned out the way FCA had communicated them to be. After doing some research, it has been confirmed that the firms that were issued with temporary licenses were those that were already operating in the crypto-space.