The Financial Conduct Authority said it is adding 80 staff to bolster its efforts to crack down on companies that do not meet regulatory standards as part of a three-year strategy to reduce consumer harm, raise standards and increase competition.
The U.K.'s financial services regulator said closing down companies that fail to meet basic regulatory standards will protect consumers from potential fraud, poor treatment and create a better market.
The agency is one of many regulators worldwide with responsibility for crypto companies, and the announcement comes days after the Temporary Registration Regime, which allowed them to operate in the U.K. without full registration, ended. The firms had until April 1 to obtain full registration, though a select few have been permitted to continue with temporary registration.
"This leads to questions being raised about whether these companies will be able to continue operating in the U.K. market, and what happens to consumer crypto assets currently held by consumers with these companies," Emma McInnes, the global head of financial services at research company YouGov, said in an interview, adding:
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