For one thing, many business owners in the cryptocurrency industry look for countries with friendly crypto regulations to establish their crypto projects. In fact, the world’s crypto trading platform, Binance had to make a strategic move to Malta due to the regulatory backlash in China.
Now, the United Kingdom, after exiting the European Union (EU) is making efforts to ensure that the country is welcoming for crypto-related firms. For instance, the modification of the registration fees for crypto businesses.
The UK Financial Conduct Authority (FCA) has released a document containing the latest registration fee structure for crypto companies in the country, which appears to be favorable to small crypto businesses.
The regulator had earlier proposed that every cryptocurrency business operating in the UK must pay £5,000 (~$6,500) for registration, irrespective of the size and income capacity of the firm.
However, the FCA, after receiving complaints that the fee is too high for small businesses and startups, decided to change the structure, making the fee cheaper for businesses with low income.
UK new registration fee for crypto businesses
As per the new structure, cryptocurrency firms in the U.K. with an income below or equal to £250,000 (~ $325,000), will pay £2,000 (~$2,600) as registration fee. Bigger companies with an income above £250,000 will pay £10,000 (~$13,000) as the fee.
The new fees by FCA are quite commendable as it would likely encourage small business owners to register their startups in the country.
According to the UK watchdog, a CEO of a crypto company explained how he spent less than £650 and £5,100 in the first and second year of business, saying that paying the £5,000 registration fee means spending more on regulation than critical matters such as penetration testing, information security, staff, etc.
Also, a few others who responded to the consultation added that small businesses ought not to be regulated, and also they shouldn’t pay any fees at all. In response to this, the regulator said in the report:
Parliament has instructed us to regulate all cryptoasset businesses conducting the activities listed in the legislation. It did not set any limits on size. We cannot choose who we will regulate. It is fair that all regulated businesses should contribute towards the costs of supervision.
In July, FCA said it would publish guidance that will enable companies to understand if or not they are subject to the FCA regulation.