The UK’s Financial Conduct Authority (FCA) has extended the time for cryptocurrencies in the country to register their activities and comply with anti-money laundering (AML) and other requirements.
In a press release issued today, the financial regulator confirmed that Temporary regulatory framework The current cryptographic attempts (TRR) will be extended until March 31, 2022.
The extension of the deadline, originally set for July 9, 2021, gives encryption companies little breathing space to work with because they hope to ensure compliance with the FCA.
However, it also highlights the difficulties faced by cryptographic firms in complying with AML rules, in particular requirements such as “travel rules” called on by the G20 Financial Action Task Force to introduce states where barter and other virtual property service providers may need to be able to identify recipients and users. senders.
FCA Encryption Registration: Rough Distance So Far
FCA has worked significantly to create a regulatory system for cryptocurrencies in the UK since it took on the role of a watchdog for cryptocurrency in the country in 2020. The agency had originally set a registration deadline of June 2020. It even sent successive warnings saying companies that did not register by and cease operations.
Unfortunately, the regulator was full of applications from the start, when companies wishing to take advantage of the UK market used it around the clock. The coronavirus pandemic also significantly delayed the review process, and all of these factors caused the FCA to completely destroy the registration program.
The FCA will replace the program introduced TRR system last December. Under the scheme, cryptographic companies that had applied for registration before 16 December 2020 and whose applications were still being evaluated would be able to continue operating until 9 July 2021, a date which, according to today’s press release, has now been extended.
Importance of money laundering provisions
For the reason of the expansion, the FCA explained that a large number of companies have not yet met the requirements of their money laundering code – leading to the withdrawal of mass applications. With the expansion, cryptographic firms based in the UK will be able to continue to operate as the regulator examines their applications.
“The fight against money laundering and terrorist financing aims to protect against the transfer and concealment of criminal assets. Although this is not the only factor assessed by the FCA in relation to an applicant, the FCA only registers companies where it is certain that processes exist to identify and prevent such activity.” , the publication added.
Several companies have received encryption registration approval from the FCA, including the Gemini Foundation, the digital security exchange Archax, and the cryptographic banking organization Ziglu. However, many others – including large digital service companies eToro and Revolut – are still awaiting approval.
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