The UK Financial Conduct Authority (FCA) has reminded crypto businesses to apply for registration by the end of the month to ensure that their applications are processed on time before the January 2021 deadline.
What has happened
The UK financial regulator has reminded firms that undertake certain cryptoasset activity in the UK to submit their applications for registration by 30 June to ensure these are processed on time for the 10 January 2021 deadline.
What does this mean
On 10 January 2020, the FCA became the anti-money laundering and countering terrorist financing supervisor for some types of cryptoasset businesses, meaning that the latter need to register with the regulator and explain, among other things, how they will meet a host of requirements, such as applying "enhanced due diligence" when dealing with higher-risk customers.
The regulator said that the 30 June date will allow it to review applications and raise any follow-up questions in time for the process to be completed before next year's deadline.
"Any businesses that started carrying on business in the UK immediately before 10 January 2020 and are not registered by the FCA by the 10 January 2021 deadline will have to cease carrying on business," the FCA warned.
New businesses that began operating after 10 January 2020 must be registered with the FCA before carrying out any business.
"Firms authorised or registered under the Financial Services and Markets Act 2000, Electronic Money Regulations 2011 or Payment Services Regulations 2017 but undertaking cryptoasset activity subject to the [the amended Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017] will also be required to apply for registration," the FCA said.
The FCA added that it will "proactively supervise firms’ compliance with the new regulations, and will take swift action where firms fall short of desired standards".
Next steps
With only a week to go to send applications to the FCA, firms should take steps now to ensure they meet the 30 June deadline.
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