Although it is planned to build this place into a bustling data encryption center, the US financial regulatory authority shows that only 41 of the 300 data encryption companies seeking regulatory approval have won all the approvals so far.

On January 10, 2020, the U.S. Financial Conduct Administration (FCA) implemented a new policy and regulation centered on virtual currency to control the business process of the industry and ensure that it complies with the same compliance management (AML) and anti-terrorist equity financing (CTF) policies and regulations as companies in the traditional financial system.

A statement from the FCA showed that of the 265 "clear" applications, only 15% of the applications were approved and applied for registration, while 74% of the companies rejected or cancelled their applications, and 11% of the companies were rejected. In addition, 35 applications remain to be clarified.

Although the FCA did not specify the main reasons for rejection or cancellation of the application, it did bring feedback about the "good quality and bad quality" application.

According to the report, in a more complete application, there are also detailed descriptions of the company's business model, the roles and responsibilities of business partners and service providers, the origin of liquidity, and cash flow data charts, as well as the relevant policies and system overview formulated for risk control.

The imperfect application is more obvious when the company uses this application to market its products and services, especially when the application is still in progress:

"The website and marketing materials of the applicant shall not include an expression that clearly indicates that the application for registration is approved or introduced by FCA."

The report shows that if some companies fail to prove that they have sufficient blockchain technology compliance management network resources to supervise the on-chain trading, their applications are likely to be obsolete.

FCA also doubled its focus on its compliance management perspective and required all companies to serve as a senior money laundering reporting officer who "participated in the application process in all aspects".

The FCA also said that even those companies whose applications for registration have been approved, such approval does not mean that they will no longer be irresponsible:

"The applicant must realize that applying for registration is not a one-time procedure or check box, and there is no further responsibility or obligation or interaction with the FCA."

"This kind of feedback should help applicants prepare their application for registration in advance and make the process as simple and effective as possible," the statement said.

So far, the digital currency companies registered under the FCA include Crypto.com, Revolut, CEX.IO, eToro, Winter Trading, DRW Global Markets, Copper, Globalblock, Moneytrain and Zodia Markets.

As many companies provide international services, the Financial Conduct Authority (FCA) has also determined that it is cooperating with enterprises in other countries around the world, especially with U.S. regulators and U.S. product regulators, in order to strengthen the need for strict regulation.

The FCA has repeatedly stressed that failure to file before operation may lead to criminal charges.