British watchdog, the FCA has established a Temporary Registration Regime to allow existing cryptoasset firms, who have applied to be registered with the FCA, to continue trading.
December 16, 2020 | AtoZ Markets – Cryptoasset firms in the UK who have not yet registered with the FCA will have to return customer money and cease trading by January 10, 2021, the Financial Conduct Authority (FCA) has warned today.
The British watchdog took on supervisory responsibility for anti-money laundering in January 2019 and required existing crypto businesses to register with it by December 15, 2020, in order to enforce compliance.
FCA establishes temporary registration regime for cryptoasset firms due to backlog
The FCA says it has not been able to assess and register all firms that have applied for registration, "due to the complexity and standard of the applications received", and the pandemic restrictions on office visits.
To deal with the backlog, the watchdog has established a Temporary Registration Regime for existing cryptoasset businesses which have applied for registration before December 16, 2020, and whose applications are still being assessed. This is to enable those existing businesses to continue to trade after 9 January 2021 until 9 July 2021, pending the FCA’s determination of their application.
"Firms that did not submit an application by 15 December 2020 will not be eligible for the temporary registration regime," states the FCA. "They will need to return cryptoassets to customers and stop trading by 10 January 2021. Firms that do not stop trading by that date are at risk of being subject to the FCA’s criminal and civil enforcement powers."
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