Cryptocurrency News

UK Regulator Extends Temporary Registration Regime as Crypto Firms Fail to Meet AML Regulations

The UK’s Financial Conduct Authority revealed that several companies dealing with cryptocurrencies are not meeting anti-money laundering regulations. The government agency has stepped up its temporary registration scheme after facing an increasing number of crypto firms withdrawing their applications.

FCA extends provisional registration regime until end of March 2022

Financial Conduct Authority (FCA) announced on Thursday that it is extending the temporary registration arrangement (TRR) expiration date for crypto businesses to March 31, 2022. The regulatory body pointed out that a “significantly large number” of companies are not meeting the current Anti-Money Laundering (AML). Requirements that have resulted in an “unprecedented number” of entities withholding their applications. In a statement published on its website, the FCA noted:

The extended date allows cryptocurrency firms to continue trading while the FCA continues with its strong valuation.

Last year, the financial regulator said That all businesses trading cryptocurrencies as of January 10, 2020 are subject to the country’s updated Money Laundering Regulations. Initially, they were required to register with the FCA by January 10, 2021. Later, the compliance deadline was extended to July 9 and the TRR scheme was introduced to allow cryptocurrency firms that applied for registration before December 16, 2020. Continue to work while their applications are still being processed.

Brits warn FCA doesn’t have consumer protection powers

In an announcement this week, the FCA states that Britain’s anti-money laundering and counter-terrorism financing law is designed to protect against “enabling the transfer and concealment of funds from criminal activity, or the funding of terrorist groups”. has gone. The agency, which operates independently under the UK government, added:

While this is not the only element that the FCA will assess in relation to an applicant, the FCA will only register firms where it believes that procedures are in place to identify and prevent this activity.

Crypto assets are highly speculative and likely to lose value quickly, with the financial authority warning that it has not been given the powers to provide consumer protection for the activities of British crypto companies, even if they are registered with it. If consumers invest in cryptocurrencies, they should be prepared to lose their money, the FCA said, emphasizing that they are unlikely to have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme.

Why do you think some crypto companies are not meeting UK AML regulations? Share your thoughts on this topic in the comment section below.

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