FCA Extends Temporary Registration Regime For Cryptocurrency Firms Until March 2022 of the year – Bits Media

UK Financial Regulator Extends Temporary Registration Regime For Cryptocurrency Companies Until March 2022 of the year, as most of them are still "not up to the required standards".

UK Financial Conduct Authority (FCA) stated, that a “significant number” of cryptocurrency-related firms do not meet anti-money laundering requirements. Regulator added, that this non-compliance with standards “results in an unprecedented number of businesses, who have withdrawn their applications for registration ".

UK Cryptocurrency Companies Must Register With FCA. The regulator also introduced a system of temporary licenses for firms, who have not yet completed the registration process, which allowed them to continue their activities. So far, only five cryptocurrency-related companies have completed the full registration process with the FCA, and about 90 continue to operate under temporary licenses.

However, this status does not mean, that "they are working completely in accordance with the law", noted the regulator. Wherein 51 the company has withdrawn its registration application and must suspend its activities. To consider the remaining applications, the FCA extended the temporary registration regime from 9 July this year to 31 Martha 2022 of the year.

“The extension of the temporary registration regime allows cryptocurrency firms to continue to do business, while the FCA conducts a thorough assessment ", - explained the regulator.

Recently UK MP and Secretary for Economic Affairs, UK Treasury John Glen (John Glen) reported, that only a few cryptocurrency firms comply with AML rules.

CryptoUK, the digital asset trading association, called on the UK Treasury Secretary to take action on delays in the start-up registration process with the FDA in March.. According to the association, cryptocurrency companies, trying to register with the FCA under the new regulatory regime, faced a "difficult process", and most of the firms belonging to the association have not yet received a response from the regulator.