The UK financial industry regulator, the Financial Conduct Authority, has recently amended its registration fee process when it comes to crypto firms in particular. Originally, there was a proposed fixed fee of £5,000, or about $6,500 for all firms across the board. With the new fee structure put in place, crypto companies that gain a net income that is lower than £250,000 will now only pay £2,000 in registration fees. Companies above that net income mark will have to dock out £10,000 to be registered.
Support Of Smaller Companies
The good news of this is that the FCA had listened to the feedback of the country’s crypto industry, prompting the amendment in the first place. During a consultation session that occurred in October last year, objections were made that stated that smaller firms were less capable of paying the £5,000 fee proposed. The FCA had proposed those fees using the cost the regulator would have to bear to register 80 estimated potential applications.
The FCA explained that the cost of the processes was approximately £400,000. With 80 potential applicants that the FCA was aware of, they split the cost even between them all, resulting in the £5,000 fee.
Bigger Company, Bigger Fees
The firm is trying to give smaller firms a chance, but the admin fees don’t vanish due to good intentions, and the FCA needs to break even at least. As a result of lesser registration for small companies, more prominent companies have to pay twice the original amount that was proposed.
The FCA is gearing up to be a significant player when it comes to crypto regulation within the UK. As it stands now, the regulator will direct various initiatives, all aimed with the intent to eliminate money laundering and terrorist financing achieved by way of crypto. This runs in tandem with the Economic Crime Plan 2019-22.
Crypto Era Dawning
The agency has mandated all crypto companies within the UK to register with it by the deadline of January 2021. To make sure all the companies are registered by that time, it requires all the companies to submit their applications by June 2020.
Crypto regulation is becoming all the more common in countries across the globe. The world is slowly starting to realize that cryptocurrencies and the technologies it’s based on, is here to stay. The wild-west era of crypto has now run its course, all that’s left is for the world to go through the growing pains of integration.