Crypto Firm B2C2 Pulls its Application for UK Licensing as FCA Deadline Approaches

Crypto market-making firm, B2C2 Ltd has notably withdrawn its application to be a licensed operator from the United Kingdom as the deadline to secure approval from the Financial Conduct Authority (FCA) approaches. 

In reality, sources claim that the FCA has sent a clear message to the 21 crypto firms currently on its Temporary Operational list to either withdraw their application, or risk being rejected at the tail end of the review process. B2C2 chose the former path, and its spot trading activities will be handled by B2C2 USA. B2C2’s. According to those close to the matter, the derivatives offerings the firm offers will be handled by the FCA regulated B2C2 OTC Ltd.

“We are committed to ensuring this move causes as little disruption as possible and are working closely with our clients to ensure they continue to have a seamless trading experience with us,” said a spokesperson for the company. “Delivering on this objective includes meaningful dialogue with regulators and strict compliance with the regulatory framework in the jurisdictions where we operate.”

FCA Says its Crypto Demand is Tough But Achievable

With March 31 being the deadline to secure the necessary approval to continue operating in the UK, digital banks like Revolut are amongst those whose faith is now hanging in the balance. Digital currencies have gone somewhat mainstream in the past few years and more companies are looking at the avenues to offer products to take a share of the growing demand.

Amongst the luckiest firms is Uphold which secured a license to operate as a full-fledged crypto assets service provider in the UK last month.

While the UK has been a tough region to navigate, the population is crypto savvy and has carved out the country as an emerging crypto hub. As firms approach the deadline with varying optimism, the FCA has confirmed that its requirements are undoubtedly tough, but they are very much achievable.

“We have set a high, but achievable, standard required to be registered with us for AML purposes. Our focus is on ensuring firms are not a conduit for money laundering and they have the systems to properly manage financial crime risks,” an FCA spokesperson said in a statement.

The FCA has maintained the need to position the digital currency ecosystem in such a way that the average investors can be well protected. Without waiting for the deadline, the regulator took action against Binance exchange last year, with the company only just resuming its GBP deposit and withdrawal services in partnership with local payment outfit, Paysafe.