FCA Reminds UK Crypto Firms to Register Before End of June

The FCA Monday reminds crypto firms in the UK to register with the regulator to comply with new regulations. 

June 22 2020 | AtoZ Markets – The Financial Conduct Authority (FCA) has told crypto businesses it will need half a year to fully process applications before the hard deadline in January.

June 30 allows FCA to review UK Crypto firms application

The chief financial regulator announced Monday that any company carrying out “cryptoasset activity in the U.K.” must have submitted their completed applications to them by June 30. Although the hard deadline for applications is January 10, 2021, the regulator says it wants more than six months to go through firms’ submissions.

“The 30 June date allows the FCA to review submitted applications and raise any follow-up questions with firms, with enough time for that process to be completed before 10 January 2021,” the FCA said.

Crypto Businesses that haven’t successfully registered with the FCA by January 10 2021 will have to cease all activity in the U.K.

Related article: UK FCA Revised Fee for Crypto Business Registration

The FCA first told crypto firms they would need to register in January; soon after the U.K. transposed FATF’s “Travel Rule” recommendation into national law, which made the regulator responsible for ensuring all crypto businesses follow the new anti-money laundering (AML) and counter-terrorist financing (CTF) requirements.

The FCA brought in guidance for cryptocurrencies last year, where it highlighted what types of tokens currently fall under its jurisdiction. In 2018, it started welcoming crypto startups into its regulatory sandbox – an initiative that allows businesses to set up and test new products and services with temporary and provisory authorization from the regulator.

Information required during the registration process?

When making a registration assessment the FCA will need information relating to a business. The FCA will also need information on the applicant and all key individuals who hold a relevant function at the business. This will help the watchdog assess whether or not they are fit and proper.

The information the FCA will ask about a crypto frims will include, inter alia, program of operations, which sets out the specific cryptoasset activities for the business; a business plan outlining the business objectives, customers, employees, governance, plans and projections; details about individuals, beneficial owners and close links; Anti-Money Laundering/Counter Terrorist Finance framework and risk assessment.

The regulator also requires an applicant to provide information about all cryptoassset public keys/wallet addresses. This should include all of the cryptoasset addresses controlled by the business and used in the activity of the business for each cryptoasset that the business deals with.

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