UK FCA extends deadline for crypto company registration applications to end of March next year

The UK’s Financial Conduct Authority (FCA) has again extended the registration deadline for existing crypto businesses in the country.

UK FCA extends deadline for crypto company registration applications to end of March next year

Summary.

The U.K. financial regulator has further extended the registration deadline for existing crypto companies.

The new registration deadline is March 31, 2022, compared to the previous deadline of July 9, 2021.

The UK’s Financial Conduct Authority (FCA) has once again extended the registration deadline for existing crypto businesses in the country. the FCA announced on Thursday (June 3) that the new registration deadline is March 31, 2022.

Last December, the FCA created a provisional registration system after struggling to process hundreds of applications. The initial deadline was Jan. 10, 2021, which was later pushed back to July 9. The regime allows existing crypto companies that have submitted applications for registration with the FCA to continue trading.

The FCA said an “unprecedented number” of companies are also withdrawing their applications because they do not meet the criteria set out in anti-money laundering regulations.

In fact, UK Treasury official John Glen said last week that more than 90 percent of the companies assessed so far have withdrawn their applications following the FCA’s intervention. According to Glen, many crypto companies do not employ the right people to implement AML procedures.

In Trouble

Glen said last week that there are still 167 crypto companies waiting to register. There are also 77 new crypto startups whose applications are waiting to be fully evaluated.

So far, only five crypto companies have registered in the United Kingdom. They are Ziglu, Archax, Digivault and two Gemini entities.

Sources familiar with the FCA’s registration process recently told The Block that the watchdog lacks sufficient manpower and expertise. One source said at the time that “applicants are interviewed over the phone for up to three hours about the AML process, with an average of about 80 document requests to process per application.”

The FCA’s inaction has led to the intervention of the lobby group CryptoUK, which in March called on U.K. Treasury Secretary Rishi Sunak to help. Last month, UK MP Tom Tugendhat called on the UK Treasury to create a “safe space” for crypto innovation in the UK.

The U.K.’s Financial Conduct Authority said Thursday it will “only register companies that are confident they are providing procedures to identify and prevent [money laundering and terrorist financing] activity.” The extended deadline allows crypto companies to continue operating while the FCA continues its assessment.

The FCA also warned again that cryptocurrencies are speculative and investors should be prepared to lose all their money. The regulator said that “even if a company is registered with the FCA, it is not responsible for ensuring that crypto asset businesses protect client assets (i.e. client money), etc.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/uk-fca-extends-deadline-for-crypto-company-registration-applications-to-end-of-march-next-year/
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