UK finance watchdog revises registration fees for crypto businesses

The U.K. Financial Conduct Authority (FCA) has made changes to its registration fees structure for crypto businesses.

The new structure is based on income crypto firms generate. If their income from U.K. crypto activity is up to £250,000 (~ $325,000), businesses will be charged £2,000 (~$2,600) registration fees. While those firms with an income of more than £250,000, will have to pay £10,000 (~$13,000).

Previously, the FCA had proposed a flat fee of $5,000 (~$6,500) for all crypto businesses, but based on feedback it received from the community, it decided to amend the fees. The main feedback was £5,000 charge would be “too high for small firms and start-ups.”

Some respondents also suggested that small businesses should not pay fees, and one suggested that they should not be regulated at all. To that, the FCA said: “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.”

The FCA has been the regulatory supervisor for crypto firms in the U.K. since January 10, when the European Union’s fifth anti-money laundering directive (5AMLD) came into force. As a result, all crypto businesses operating in the country are required to be registered with the FCA by Jan. 10, 2021.