Companies whose cryptocurrency business must register with the FCA from January before commencing operations. The regulator oversees compliance with UK laws to prevent money laundering and terrorist financing. “The FCA will only register companies that are confident that they have processes in place that identify and prevent these activities,” the regulator said.
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The Office has so far registered five companies. As of May 12, another 90 companies had a temporary registration that allows them to operate while the regulator evaluates the company’s practices. However, the FCA does not consider this status to be appropriate.
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The deadline for the temporary registration can be extended by the Office from June 9 this year to March 2022. A total of 51 companies have withdrawn their application for registration and can no longer do business.
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Cryptocurrencies have recently been criticized around the world. A number of prominent figures, including US Secretary of the Treasury Janet Yellen and the head of the European Central Bank (ECB) Christine Lagarde, have expressed concern about the use of cryptocurrencies for money laundering, terrorist financing and other illegal activities.
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In April, the Turkish central bank decided to ban cryptocurrencies on payments because, in its opinion, they are accompanied by high risk. In May, the Central Bank of India unofficially called on financial institutions and other lenders to sever ties with cryptocurrency exchanges and traders.
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Symptom of a bubble in the financial market
Cryptocurrencies like bitcoin are a “farce” and symptoms of financial market bubbles, said Pascal Blanque of Amundi, Europe’s largest investment manager, at a conference on Thursday. “Bitcoin will be remembered as an impetus for why central banks have adopted digital currencies,” he added. “Music will then be turned off” by central banks and governments, Blanque concluded.
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Central bank digital currencies are not the same as cryptocurrencies such as bitcoin. They are going to be issued and inspected by the authorities, while cryptocurrents are acquiring them because of their proclaimed independence.
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Bitcoins and other virtual currencies
There are many virtual currencies. One of the oldest and currently the most popular are the so-called bitcoins. They were created in 2009, but have enjoyed greater popularity in recent years. This currency was designed so that it could not be influenced by any government or central bank.
Cyber coins are “minting” a network of computers with specialized software programmed to release new coins at a steady but declining pace. The number of coins in circulation is expected to reach 21 million in the end, which is to be around 2140.
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