June 3, 2021 | AtoZ Markets- The FCA is extending the end date of the Temporary Registrations Regime (TRR) for existing cryptoasset businesses from 9 July 2021 to 31 March 2022.
The United Kingdom’s financial market regulator has extended the Temporary Registrations Regime (TRR) for existing crypto companies that will be allowed to operate until the next year.
The TRR was established last year to allow existing cryptoasset firms that applied for registration before 16 December 2020, and whose applications are still being assessed, to continue trading.
What the FCA Says
The FCA has said that " A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations. This has resulted in an unprecedented number of businesses withdrawing their applications".
Also was said the extended date allows cryptoasset firms to continue to carry on business while the FCA continues with its robust 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 funding of terrorist groups", noted FCA.
While this is not the only element that the FCA will assess in relation to an applicant, the FCA will only register firms where it is confident that processes are in place to identify and prevent this activity.
FCA Warns About Cryptocurrency Risk
"Many cryptoassets are highly speculative and can therefore lose value quickly. The FCA does not have consumer protection powers for the cryptoasset activities of firms".
FCA has also said that "Cryptoassets are considered very high risk, and speculative investments. If consumers invest in cryptoassets, they should be prepared to lose all their money".
Cryptoasset Firms with Temporary Registration in FCA
The FCA has created a list that all investors should review about companies that are approved to offer their services in the cryptocurrency market.
This list includes details of all cryptoasset firms with temporary registration to carry out cryptoasset activities specified under the amended Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs), explain de UK regulator.
Find out about the regulation of cryptoassets and the risks of investing here https://www.fca.org.uk/consumers/cryptoassets
This list was last updated on 3 June 2021.
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