On Mar. 30, the Financial Conduct Authority of the United Kingdom announced that it gives crypto companies more time to register with the regulator. The original deadline for the registration was Mar. 31.
UK FCA to Extend Registration Deadline
A select few firms, including Revolut, a fintech company, and crypto start-up company Cooper, will be allowed to continue trading after a temporary registration regime closes, according to an update posted by the FCA on its official website.
Copper counts the former finance minister of the United Kingdom, Philip Hammond, as an advisor, according to The Financial Times.
The temporary register closes on Apr. 1 for all but for a small number of firms where it is strictly necessary to continue to have temporary registration, according to the FCA. This is needed where a firm may pursue an appeal or have particular winding-down circumstances.
The crypto firms operating in the United Kingdom are required to be registered with the Financial Conduct Authority under the money laundering regulations.
Also Read: Britain Pushes Through Various Crypto Curbs - Gives Warning To Unregistered Crypto Companies?
However, several companies have yet to make the cut. The Financial Conduct Authority set up a temporary register to allow crypto firms to continue trading while seeking full and legal authorization.
The list of firms on the temporary register of the UK's FCA has decreased considerably in the past few weeks, with market maker B2C2 and trading app Wirex among the firms withdrawing their applications.
B2C2 is reportedly changing its spot trading operations at an entity in the United States. Meanwhile, Wirex plans to offer crypto services to its British customers via a Croatian subsidiary.
Now, only 12 businesses remain on the temporary regime, including Revolut, Copper, and Blockchain.com, a crypto wallet platform, according to Bloomberg.
Red Flags That Authorities Missed
Paysafe, a massive fintech firm that is on the full register of the Financial Conduct Authority has said that it welcomes heightened regulatory oversight of the crypto industry.
Chirag Patel, the CEO of Paysafe's digital wallets division, said that the United Kingdom's registration regime would mean that a number of companies will eventually need to exit the country's market because they are unable to meet the needed standards in terms of risks and compliance.
Still, there has been a backlash from the crypto industry over the Financial Conduct Authority's handling of the registration process. Industry insiders told CNBC that the regulator is understaffed and has been very slow to approve the applications.
For its part, the FCA said that a high number of crypto firms are not meeting the needed anti-money laundering standards. Just 33 companies have made it onto the FCA's full register.
An FCA spokesperson said through email that while they have registered 33 firms, they have seen too many financial crime red flags missed by the cryptoasset businesses seeking registration.
Worse, the FCA has seen examples where companies do not have the controls needed to raise red flags in the first place.
The watchdog's deadline extension comes as UK officials are set to announce a new regulatory regime for crypto next week. The Treasury Department is yet to make a statement regarding the extension.
In March, the UK's watchdog sent notices to 50 crypto firms because of misleading ads.
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This article is owned by Tech Times
Written by Sophie Webster
