Plethora of UK Crypto Firms are Dropping their FCA Registration Applications

[mlawson71]

Multiple cryptocurrency service companies and exchanges are pulling out their applications for license from the British financial regulator FCA. The number of companies doing this has increased quite a lot, and the result is that the UK is no longer considered a preferred destination for the crypto business.
According to a recent report, 64 companies have pulled said applications since they no longer want an FCA license.
The regulators forced all local crypto companies to apply for said license, however the whole process had negative consequences for everyone are it turned out that the FCA processes said applications at an excruciatingly slow pace. The FCA attempted to remedy the situation by extending the period for application to March 31st 2022, but it appears companies just prefer to take their proverbial hat and go.
So far only six companies have received the previously coveted FCA license.
Meanwhile, the demand for cryptocurrencies in the UK is through the roof, with more than 2.3 million locals holding digital coins.
Source
I wonder whether the FCA is doing this on purpose to curb the crypto industry or the bureaucratic process really is just that slow.