United Kingdom’s FCA Proposes New Rules for Crypto-asset Businesses

The Financial Conduct Authority (FCA) in the United Kingdom has proposed a new set of rules for crypto business and announces to implement these rules in the country.

United Kingdom’s FCA has published a handbook that will provide a detailed set of rules for crypto businesses. This handbook will give details about different application fees for businesses that will be applied according to their business size, income, and profit.

FCA proposes a new fee structure for crypto firms

United Kingdom’s FCA has made amendments to its initial proposal and has proposed a new fee structure for the crypto firms. The previous proposal for fee structure was released back in October 2019 and involved a flat fee charge of £5000 for the registration of the businesses. This fee aimed to recover approximately £400,000 in gateway costs from 80 potential businesses.

According to this new proposal, the registration fee for those businesses that have income up to £250,000 is now £2,000 while those businesses that have income above £250,000 are charged with £10,000.

There were almost 29 responses that were received to FCA regarding the previously proposed application fees and then FCA amended this proposal keeping in view these responses and presented a new one. A part of this handbook states:

“A strong message from a roundtable meeting with cryptoasset businesses on 18 October 2019, backed up by many of the written consultation responses, was that our proposed registration charge of £5,000 would be too high for small firms and start-ups.”

According to the report of FinanceFeeds, this newly released set of regulatory policies will supervise all the operations of the crypto businesses in the country.

Parliament instructs FCA to regulate all businesses

The Financial Conduct Authority also included some suggestions from the feedback in the handbook. These suggestions state that there should not be any regulatory fees for smaller businesses. As a response, the financial authority stated that they are instructed by Parliament and would regulate all crypto-asset businesses in the country.

United Kingdom regulators are showing their serious concern about cryptocurrency. The regulatory authority also released a final guidance document detailing its crypto regulatory legislation in August 2019.

Leave a Reply

Your email address will not be published.