The Temporary Registrations Regime's end date for crypto companies has been pushed to March 2022.
The United Kingdom’s Financial Conduct Authority (FCA) has extended
the end date of crypto-asset companies’ temporary registration from July
2021 to March 2022.
The Temporary Registrations Regime, or TRR,
was established last year to enable crypto businesses to continue
trading while their registrations were still being assessed by the FCA.
With the latest announcement, any crypto companies that applied before Dec. 16, 2020 have temporary registration until March 31, 2022.
After
becoming the supervisor of Anti-Money Laundering and Counter-Terrorist
Financing measures for crypto companies in the United Kingdom, the FCA
obliged all crypto-asset businesses to comply with the country’s AML
regulations. The initial deadline for the registration was Jan. 10, 2021.
But
since the COVID-19 pandemic made site visits difficult, along with the
“the complexity and standard of the applications received,” the FCA announced
the TRR and issued temporary registrations to all businesses that
submitted an application before Dec. 16. The initial period of the TRR
was set to end on July 9, 2021.
The temporary registration is
limited to businesses that were active prior to Jan. 10, 2020. New
companies require full registration.
According to the
announcement, an “unprecedented number of businesses” withdrew their
applications due to their substandard operations regarding the Money
Laundering Regulations. “The extended date allows cryptoasset firms to
continue to carry on business while the FCA continues with its robust
assessment,” the announcement reads.
The FCA’s announcement
reiterates the risks involved in crypto asset trading, stating that an
FCA registration does not guarantee the protection of client assets. The
financial regulator issued a warning earlier this year when Bitcoin (BTC) took a dive below $33,000, stressing that investors should be ready to lose all their money while investing in crypto.
source link : https://cointelegraph.com/news/uk-fca-buys-another-9-months-to-review-crypto-companies-registrations
