The UK’s Financial Conduct Authority (FCA) has extended the end date for the temporary registration of crypto asset companies from July 2021 to March 2022.
The Temporary Registration Regime (TRR) was introduced last year to allow cryptocurrency companies to continue their operations while the FCA is still evaluating their registrations.With the latest announcement, all cryptocurrency companies that applied before December 16, 2020 will have a temporary registration until March 31, 2022.
After becoming the anti-money laundering and terrorist financing regulator for cryptocurrency companies in the UK, the FCA forced all cryptocurrency asset companies to comply with the country’s AML regulationsThe first registration deadline was January 10th, 2021.
But because the COVID-19 pandemic made site visits difficult, along with “the complexity and standard of applications received,” the FCA announced the TRR and granted all companies that submitted an application before Jan.. The initial term of the TRR should end on July 9, 2021.
Temporary registration is limited to companies that were active prior to January 10, 2020. New companies require full registration.
According to the announcement, an “unprecedented number of companies” ???? has withdrawn its applications due to its inadequate conduct in relation to the Money Laundering Ordinance“The extended date allows crypto-asset companies to continue operations while the FCA continues its robust valuation,” the announcement said.
The FCA announcement reiterates the risks associated with trading crypto assets and states that an FCA registry does not guarantee protection of clients’ assets.Financial regulators issued a warning earlier this year when Bitcoin (BTC) fell below $ 33,000, stressing that investors should be ready to lose all of their money while investing in cryptocurrencies.