On Thursday, June 3, the FCA introduced that it had prolonged the deadline for the so-called “Short-term Registration regime “from July 9 2021, to March 31 2022.
Companies offering cryptocurrency-related providers are required to register with the monetary regulator. The watchdog launched a brief licensing regime for crypto companies whose functions haven’t but been accredited to permit them to proceed buying and selling.
“A considerably excessive variety of companies will not be assembly the required requirements below the Cash Laundering Laws leading to an unprecedented variety of companies withdrawing their functions,” the FCA acknowledged.
The watchdog mentioned that the prolonged deadline goals to permit cryptocurrency firms to proceed doing their companies whereas the company continues finishing up sturdy assessments.
In December 2020, the regulator launched a brief registration regime after dealing with struggles coping with a whole bunch of functions from crypto corporations in search of to register their current companies.
The preliminary deadline for accepting functions was scheduled for January 10 2021, however the regulator pushed the deadline again to July 9, 2021, and has additional prolonged the deadline till March 31 2022.
Up to now, solely 5 corporations (together with Digivault, Archax, Ziglu, and two Gemini entities) are presently registered with the FCA.
The FCA has been pressured to increase the deadline twice as a result of a number of utility opinions are nonetheless pending. The regulator mentioned that many firms are additionally withdrawing their functions as a result of they don’t seem to be assembly the required requirements below the cash laundering rules.
Late final month, UK treasury official John Glen acknowledged that thus far, over 90% of the crypto firms have withdrawn their functions following the FCA’s engagement within the evaluate train. Glen additionally talked about that a number of crypto firms have did not make use of the correct experience to implement anti-money laundering processes.
Glen additional acknowledged that there are 167 crypto firms nonetheless ready for registration, and there are additionally 77 new cryptocurrency startups whose functions are pending a full evaluation.
Crypto Funding Dangers
Final yr, the UK’s Monetary Conduct Authority warned native traders to alert the danger of the whole loss to their capital for cryptocurrencies investments. The authority warned traders to be cautious of funding and lending merchandise associated to cryptocurrencies that include very excessive dangers.
The company mentioned that some firms providing investments or lending providers linked to crypto property claimed excessive returns usually includes excessive dangers. The authorities additionally warned in regards to the speculative nature of crypto property.
Cryptocurrencies equivalent to Bitcoin have lengthy been related to unlawful actions like cyberattacks and cash laundering as a result of individuals transacting them don’t reveal their identification.
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