FCA underlines new regulations on cryptoasset activity

The FCA has reminded businesses in the UK that carry out cryptoasset activity that they have to register with the FCA to ensure their compliance with new regulations.

To ensure that applications are processed on time, the FCA has also stated that it requires firms to submit completed applications for registration by 30 June 2020.

The FCA became the anti-money laundering and counter-terrorist financing (AML/CTF) supervisor of businesses carrying out certain cryptoasset activities in the UK on 10 January 2020.

Any firms operating in the UK before 10 January which have not registered with the FCA by 10 January 2021 will cease operations. Meanwhile, any firms which began operating after 10 January 2020 must be registered with the FCA before they conduct business.

The 30 June deadline will allow the FCA to review submitted applications and raise any follow-up questions, with sufficient time for the process to be completed before 10 January 2021.

Furthermore, even if firms are registered or authorised under the Financial Services and Markets Act 2000, Electronic Money Regulations 2011 or Payment Services Regulations, they will still be required to apply for registration if they’re undertaking cryptoasset activity subject to the MLRs.

The FCA emphasised that it will proactively supervise organisations as they seek to guarantee compliance with the new regulations and will take swift action where firms fall short of desired standards.