The UK’s Financial Conduct Authority (FCA) has decided to extend the temporary registration regime for crypto businesses that was due to expire at the end of March.

As a result, 12 companies that were faced with suspending their operations, will be allowed to continue trading with a temporary licence.

Among those companies are payments provider Revolut, crypto custodian Copper and digital asset trading firm GlobalBlock

It is the second extension for the licensing regime that was originally due to expire in December 2021 and comes after the FCA faced criticism for the slow pace of its registration efforts, including a Treasury select committee report published in January.

News of the extension was criticised by the committee’s chair Mel Stride who said that it was “disappointing to hear that the FCA hasn’t fully met its win already-extended deadline” adding that he looked forward “to receiving a full explanation for the delay”.

Without the extension, the UK faced the prospect of an exodus of crypto firms at a time when it is looking to establish itself as a hub for the digital assets market.

And while the FCA’s move may help the 12 companies involved, the fear is that others may have already decided to base their businesses elsewhere, according to Lisa Cameron, chair of the UK Parliamentary Group ion Crypto and Digital Assets.

“In terms of commercial certainty, the FCA’s lack of clarification has caused substantial challenges for firms,” said Cameron. “We are now hearing about firms purposefully leaving the UK as a result of the FCA’s attitude, which will cost the UK in terms of employment, talent and income.”

The Financial Times quoted the chief executive of a crypto firm that been asked by the FCA to withdraw its application and had decided to relocate to Europe. “We decided some time ago to say ‘screw them’,” he said.

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