The United Kingdom Financial Conduct Authority has extended its temporary regime that would allow crypto asset businesses to continue trading while it assesses applications.
- The FCA pushed back the end date of the Temporary Registrations Regime (TRR) to March 31, 2022. Previously, it was set to end July 9, 2021.
- The TRR allows firms that applied for registration before December 16, 2020, to continue trading as their applications are reviewed.
- A number of applicants are failing to meet the required standards under the Money Laundering Regulations, which seek to prevent transfer of funds for criminal activity or funding terrorist groups.
- The FCA said the failure to meet standards has caused an unprecedented number of application withdrawals.
- The watchdog said it will only register firms it believes to have safeguards to identify and prevent money laundering.
- The FCA does not have powers on consumer protection for crypto asset activities, and that it is not responsible for mandating firms to protect client assets.