Crypto crackdown continues in UK: 64 firms withdrawn applications with FCA, NatWest bank limits transactions to crypto exchanges
The list of crypto companies giving up their attempt to register with the UK’s financial regulator (FCA) is growing. This number has now reached 64 companies. And when they withdraw their application, they will not be able to operate in the UK. Morever, as the crypto crackdown continues in Britain, another high street bank has intensified its efforts to curtail its customers’ use of digital assets.
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NatWest and other banks have ramped crypto curbs amid recent regulatory pressure on the sector
According to Reuters, Natwest Group will limit the daily amount that customers can send to crypto exchanges due to concerns about scams and investment scams. However, it was not revealed what those new limits were in terms of fiat currency transfers.
The temporary limit went into effect on June 24. Restrictions targeting certain crypto exchanges, including Binance.
The spokesperson for NatWest stated that it has recently seen a high level of cryptocurrency investment scams targeting its customers, particularly through social media sites, added:
“To protect our customers from the criminals exploiting these platforms, we’re temporarily reducing the maximum daily amount that a customer can send to cryptocurrency exchanges as well as blocking payments to a small number of cryptocurrency asset firms where we have seen particularly significant levels of fraud-related harm for our customers.”
64 firms have already withdrawn their applications and will not be able to operate in the U.K
The restrictions imposed by NatWest come at a time when the U.K. financial watchdog, the Financial Conduct Authority (FCA), is tightening its grip on unregulated cryptocurrency trading platforms.
Under current cryptocurrency regulation, FCA is responsible for ensuring crypto companies comply with anti-money laundering and terrorist financing laws. Companies wishing to provide crypto-related services in the UK must register with the FCA before conducting business.
An FCA spokesman said: “The number of companies that have ditched their applications jumped by 25% in less than a month.” The spokesperson added, about 64 companies have withdrawn their applications, up from 51 at the beginning of June.
Only six companies have successfully registered with the FCA so far, the publication added, adding that dozens more are being evaluated but they are not yet considered fit and proper.
As AZCoin News reported, the FCA issued a consumer notice on Binance, banning the exchange from engaging in regulated activities in the U.K. Recently, Binance suspended a popular local payment provider, Faster Payments, for UK customers, further restricting options for transferring GBP to and from the exchange.
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