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.
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. 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