The United Kingdom will no longer be a promised land for crypto start-ups, with the Financial Conduct Authority (FCA) slamming the door shut on any crypto aspirations, lofty or otherwise, which didn't have business in the country prior to January 10, 2020.
The move affects companies that have failed to obtain a license and are based in the United Kingdom. The deadline for obtaining such licence has been set at January 10, 2021. Earlier this year, the FCA cautioned companies to submit all licenses by July 31, 2020 so that they have enough time to go through the motions with the regulator.
So, what's the problem?
While the application process was simple enough, the companies that had applied for one, some 150 firms, started worrying at the beginning of December, as they have not heard anything from the FCA.
The issue seems to specifically affect any companies that weren't operational before January 10, 2020, leaving any operator that entered after the date in a limbo. The limbo has now been perpetuated by FCA's silence on the matter.
While some alternatives exist, most crypto companies would wish to continue operating in the UK because it offers great licensing conditions. However, they may be forced to shift their operations offshore.
Meanwhile, many crypto businesses have been operating successfully in offshore jurisdictions. Some of the most accomplished crypto casinos prefer to do so, while still meeting industry standards. They include Bitcasino, FortuneJack, 1xBit, and others.
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