As the country officially left the European Union (EU) on January 31st, 2020, the UK has also taken steps to become more cryptocurrency-friendly. It has amended existing regulations to reduce the registration fees for crypto-related businesses.
Encouraging Small Cryptocurrency Firms
The UK Financial Conduct Authority (FCA), in a newly released document, has restructured the registration fee for crypto companies. The reduction is notable and it could be seen as a way to encourage small crypto businesses.
According to the regulator, the new structure, which came into force last month, will ensure that crypto businesses with an income of up to £250,000 pay a registration fee of £2,000. On the other hand, larger firms generating more than £250,000 will pay £10,000.
The FCA had earlier suggested a fixed fee of £5,000 for all categories of crypto businesses in the country. However, the regulator decided to amend the charges after receiving negative feedback from the community that the fee is too high for small businesses.
The amendment is a milestone for small business owners in the UK looking to register their projects as the change reflects a £3,000 reduction in the registration fee.
A Friendly UK After Brexit?
Cryptopotato earlier reported that crypto companies in the EU will face stricter regulation this year as they are required to comply with a new set of rules found in the Fifth Anti-Money Laundering Directive (5AMLD). With Brexit now official and the country in transition, Britain will likely no longer be governed by any of the regulations provided by the EU as from Dec 31st, 2020.
Cryptopotato also reported that the country’s regulators, in particular, the Bank of England, is developing new rules that Facebook’s Libra and other cryptocurrency payment providers must adhere to before they gain entrance to the country.
With more regulatory frameworks underway to govern the UK crypto space, the amendment of the registration fee is a good sign that the Brexit might just be a good thing for cryptocurrency companies in the country.