Many cryptoasset firms are today breathing a huge sigh of relief, as the Financial Conduct Authority (FCA) announced that it is extending the deadline for firms requiring registration under the Money Laundering Regulations 2019.
Importantly though, this extension – a Temporary Registration Regime (TRR) – applies only to existing cryptoasset businesses that applied for registration before 16 December 2020, and whose applications are still being assessed by the FCA. Rather than a cliff-edge deadline of 10 January 2021, these firms will now have until 9 July 2021 for their applications to be assessed and determined.
Until then, they are deemed to be registered by the FCA, and will be added onto a separate Temporary Register.
Firms that have yet to apply for registration, but are existing businesses, will have to cease conducting such business by 10 January 2021. Should firms find themselves in this position, the FCA would expect the business to be wound down in an orderly manner, and have wind-down plans created to achieve just that.
Similarly, any new business will have to wait for registration to be granted before commencing cryptoasset activity, regardless of whether their application is already under consideration by the FCA or they have yet to submit an application.
Compliancy Services offer a range of support solutions for impacted firms, from full support in compiling and managing a fresh application through to providing ad hoc advice to help the firm provide satisfactory responses to the FCA’s questions.
Get in touch
On 4th December 2020 we hosted a webinar to answer the burning questions cryptoasset firms had about the application process and best practice when communicating with the FCA. In this webinar we outline the common pitfalls that firms fall into when submitting applications to the FCA, discuss best practise when responding to FCA questions and answered questions raised by stakeholders within the cryptoasset sector.
Access the webinar recording
Related resources
All resources
Identifying the weaknesses in firms’ transaction reporting governance and control frameworks
Bitesize webinar: Establishing a robust prudential monitoring framework
Operational Resilience: regulatory guidelines for critical third parties aim to avoid systemic disruption
Press Release: Cosegic launches new Consumer Duty audit.