The top financial regulatory authority in Britain, the Financial Conduct Authority (FCA) revealed that a number of crypto entities are still seeking a license to operate in the United Kingdom.
This is despite the fact that they were unable to meet the regulatory requirements in the first round. The regulator stated that the companies are aware that the regulation system is a good one.
Therefore, they are aware that if they meet the regulatory requirements for the UK, it can help in applying in other jurisdictions in the world.
On Thursday, Sheldon Mills, the executive director for competition and consumers at the Financial Conduct Authority (FCA), attended the City & Financial conference and talked about crypto regulation.
The regulatory body has been criticized by the crypto industry and also British lawmakers for taking a long time to process license applications and also for rejecting many applications.
The FCA has done so, even though the government had previously asserted that they want the UK to become a global crypto hub.
According to Mills, the strict regulatory requirements do not deter crypto companies, as a number of them simply re-apply for a license to offer services in the UK, even though they have already been rejected once.
Mill asserted that the reason that these companies decided to come back to apply for a license was that their system of regulation is a good one.
He added that the companies are aware that once they obtain a license to operate in the UK, it would become a lot easier for them to obtain licenses to operate in other jurisdictions as well.
He noted that this was beneficial for the country’s economy as well as its financial services industry. Plus, Mills said that it was also good for growth, inward investment and competition.
Mills also revealed that they had hired 95 people for joining the licensing team of the FCA and there has been a 40% decline in the number of pending applications.
Previously, the FCA said that 90% of crypto entities who wanted a license in the UK had either withdrawn their applications or been rejected due to their failure to meet standards.
Mills said that they expected to make better and faster decisions with time which would help them in keeping the costs of the regulatory system low.
There may be changes made to crypto regulation in the UK under Liz Truss, the new Prime Minister. A number of key officials who had worked on the crypto policy previously resigned from their posts before she took office.
This includes John Glen, the Economic Secretary to the Treasury, and Rishi Sunak, the Former Chancellor of the Exchequer.
Last week, the House of Commons saw the introduction of the Economic Crime and Corporate Transparency Bill by the British government.
The government said that its purpose is to strengthen the fight of the UK against economic crime.