Britain’s financial regulator bitcoin and cryptocurrency announced that it is extending the decision-making period, which ended Thursday, for companies to approve their operations, and giving companies more time to submit their applications.
Additional Time Allowed for Cryptocurrency Companies to Register
The Financial Conduct Authority (FCA) announced in a statement that temporary registration crypto companies will be given additional time if they prove they need it. Cryptocurrency companies that have temporarily registered include digital bank Revolut and cryptocurrency custodian Copper Technologies.
More than a hundred companies had chosen to register provisionally with the FCA while applications were pending. Only 12 of these provisional registrants still remain in this status.
A total of 33 companies have applied for permanent registration so far, approved by the FCA. Organizations whose applications have been approved will be able to continue providing crypto services in the UK as of April 1.
A spokesperson for the FCA said in a statement today:
“We review to make sure crypto-asset companies meet the lowest standards we expect. To meet the minimum standards we expect, companies need to have adequate systems to detect money from criminal-related sources.”
The crypto industry has warned that companies without FCA approval could move their operations outside of the UK.
Obtaining FCA approval requires compliance with the strict anti-money laundering laws enforced by the UK. However, the ability for British customers to access services provided by companies abroad has been criticized by FCA-approved companies for being unfair.
“The Majority of Crypto Companies Could Not Meet Our Requirements”
The FCA spokesperson stated the following about the crypto companies whose applications were approved:
“Although we have approved 33 crypto companies, we have noticed that crypto-asset companies that want to register are ignoring a large number of financial criminal signs. Worse still, we found that some of these companies do not have the necessary controls to detect signs of financial crime.”
*Not investment advice.