Saturday, 28 January 2023

Crypto News

FCA highlights limited role as unregistered businesses continue to operate

FCA highlights limited role as unregistered businesses continue to operate

The number of unregistered cryptocurrency-related businesses continues to outweigh those signed up with the United Kingdom’s Financial Conduct Authority. became the latest business from the cryptocurrency ecosystem to register with the FCA, joining a list of a confirmed 37 companies with the green light to offer services in the country.

Just seven businesses have gone through the registration process in 2022 to achieve Money Laundering Regulations approval, which includes eToro UK, DRW Global Markets LTD, Zodia Markets (UK) Limited, Uphold Europe Limited, Rubicon Digital UK Limited and Wintermute Trading LTD. is the seventh, registered under FORIS DAX UK Limited.

The FCA has also compiled a list of U.K.-based businesses that continue to carry out ‘crypto asset activity’ without being registered with the FCA for anti-money laundering (AML) purposes. The list is extensive, mainly featuring firms offering a variety of cryptocurrency trading and foreign exchange services.

New cryptocurrency-focused regulations were instituted in January 2020 to allow the FCA to supervise businesses operating in the space and enforce AML and counter-terrorism financing regulations (MLRs).

Companies were given just over a year to submit applications to be eligible for a temporary registration regime (TRR), while failure to do so and continue operating could be deemed a criminal offense.

Related: Enforcement and adoption: What do UK’s recent regulatory aims for crypto mean?

Cointelegraph reached out to the FCA to unpack its regulatory reach over the industry, the process of the temporary registration regime and the number of unregistered entities currently operating. The organization stressed that it does not oversee the entire cryptocurrency landscape and that it does not hold consumer protection powers. 

The body also noted that it was limited in registering U.K.-based cryptocurrency exchanges for anti-money laundering purposes. The FCA also explained that the TRR was set up to allow crypto firms already attempting to register to retain temporary trading permissions during the process.

During the TRR, firms could still apply to register with the FCA and can continue to do so after the cut-off in April 2022. The regulator also stressed that firms should not trade until they have registered. The FCA concluded assessments of all firms during the TRR, except those where it was deemed necessary to continue to have temporary registration.

The latest FCA…

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