UK Regulator Moves Deadline For Crypto Firms To Register

The U.K.'s Financial Conduct Authority (FCA) has moved its March 31st deadline for select crypto firms under its jurisdiction, in line with some revisions to its guidelines on the registration process.

The regulatory authority said that it will be moving the deadline to April 1st, but that this would only apply to a select number of crypto firms who would need to attain full registration status.

"We have concluded our assessments, and the TRR will close on 1 April, for all but for a small number of firms where it is strictly necessary to continue to have temporary registration. This is necessary where a firm may be pursuing an appeal or may have particular winding-down circumstances," the FCA stated regarding its revision of the deadline.

A temporary registry has been set in place by the FCA to allow crypto firms to operate despite their current status. The FCA is currently processing and reviewing applications to its anti-money laundering and counter-terrorist financing (AML/CTF) regulatory framework. U.K. crypto firms such as Monolith, Coindirect, CEX.IO, Blockchain.com, Copper, and Revolut are part of the Temporary Registration Regime (TRR), with a handful of other firms also placed in the list.

Crypto firms who have not registered with the FCA are at risk of being subject to the financial watchdog's criminal and civil enforcement powers. Firms who have not achieved temporary registration must have ceased trading since January 10th 2021.

With over a hundred crypto firms in the U.K. applying for the FCA's regulation, only 33 have so far been approved, with 60 other crypto firms either facing rejection from the regulator, or deciding to withdraw their application altogether. Most recently, Wirex, a crypto payments firm, withdrew their application just days before the initial deadline. Prior to this decision, Wirex started operating in the U.S. in February.

The FCA has been ramping up its crypto regulatory efforts recently, with new rules set to come into effect in April that will require crypto exchanges and wallets to identify their users. The authority also published a consultation paper in December seeking input on crypto asset derivatives.

The FCA's revised deadline for crypto firms to register comes as the agency looks to make sure that it is well-positioned to handle the accelerated growth in the crypto space. The crypto industry has been facing increased scrutiny from global regulators in the past year, with countries such as China and India taking a hardline stance against crypto-related activities.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.