Crypto: Falling Short of Regulatory Requirements

In today’s market, Cryptocurrency firms are ever more prevalent. In the UK, there are over 200 Cryptocurrency firms alone with over 90 gaining temporary registration with the FCA. In January 2020, new regulatory powers were introduced to allow the FCA to supervise how Crypto businesses manage the risk of Money Laundering and Counter-Terrorist Financing, (CTF). Now in the UK, all Cryptocurrency firms must comply with the Money Laundering Regulations (MLRs) and register with the FCA[1]. For Crypto firms to operate in the UK, many therefore require registration from the Financial Conduct Authority (FCA) to conduct business. To make this easier for firms, the FCA introduced temporary registration so that firms can continue to trade, in order to gain full registration further down the line. The temporary registration regime originally had the deadline of July 9th 2021, however last week this was pushed back to March 31st 2022[2].

The process of obtaining full registration is often lengthy and complicated to many, and as a result, many are falling short of the UK Money Laundering rules and are not gaining FCA registration as they are unable to demonstrate adequate systems and controls relating to AML/CTF. The resulting impact of this has been that a high number of firms have been withdrawing their applications completely, creating great time and cost deficiencies. Are you one of these firms? This is where Lysis can help! Here at Lysis Financial, we have the expertise and resources to help you obtain full FCA Registration. We have proven track record helping firms who have temporary registration, to become fully registered. As part of our offering, we can: Assist in the completion of the necessary forms, including ownership disclosure forms and FCA Approved Persons Forms; Provide on-going advice on the FCA Regulated activities for which your firm will require regulatory permissions; Provide details as to the broad FCA Regulatory obligations specific to Crypto related activities; Review and provide guidance as to governance, systems, and controls of your firm; Review the FCA competency requirements for senior management and other staff, including the nominated officer (MLRO); Help prepare a Regulatory Business Plan, where required; Provide advice and support to senior management for meetings with the FCA; and Project manage the Firm’s FCA application from start to finish. For more information, contact us at: [1][2]

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