FCA extends Temporary Registrations Regime deadline for crypto firms
What has happened?
The FCA announced in June 2021 that it is extending the end date of the Temporary Registrations Regime (the TRR) for existing cryptoasset businesses from 9 July 2021 to 31 March 2022.
What do you need to do?
The TRR was established in 2020 to allow existing cryptoasset firms that applied for registration before 16 December 2020, and whose applications are still being assessed, to continue trading.
The FCA reports that a significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations and that this has resulted in an unprecedented number of businesses withdrawing their applications.
The extended date is intended to allow cryptoasset firms to continue to carry on business while the FCA continues with its assessment. Anti-money laundering and counter-terrorist financing legislation are aimed at protecting against enabling the transfer and disguise of funds from criminal activity, or the funding of terrorist groups, and while this is not the only element that the FCA will assess in relation to an applicant, the regulator will register firms only where it is confident that processes are in place to identify and prevent this activity.
Only firms that are registered with the FCA or are on the list of firms with temporary registration can continue trading. Other firms should have ceased trading from 10 January 2021, and any that did not do so are at risk of being subject to FCA criminal and civil enforcement powers.
How can we help you?
If you’d like to know more about how we can help you with your firm’s cryptoasset registration arrangements, or any other regulatory compliance issues, our expert team is here to help.
Contact us today on 0207 436 0630 or email info@thistleinitiatives.co.uk.