The Financial Conduct Authority, UK’s financial watchdog, has issued a
statement reminding businesses that carry out crypto asset activity in
the country that they have to be registered with the FCA to comply
with new regulations. The regulator requires firms to submit completed
applications for registration by 30 June 2020.
Since 10 January 2020 that the FCA supervises the anti-money
laundering and counter terrorist financing (AML/CTF) of businesses
carrying out certain crypto asset activities in the UK. Any such
businesses that started activity in the UK immediately before 10
January 2020 and are not registered by the FCA by the 10 January 2021
deadline will have to cease carrying on business, according to the
regulator. Any new businesses which began operating after 10 January
2020 must be registered with the FCA before carrying out any business.
The reason for the 30 June date is that this allows the FCA to review
submitted applications and raise any follow-up questions with firms,
with enough time for that process to be completed before 10 January
2021.
The FCA also calls firms authorized or registered under the Financial
Services and Markets Act 2000, Electronic Money Regulations 2011 or
Payment Services Regulations 2017 but undertaking cryptoasset activity
subject to the MLRs, to apply for registration. The FCA will
proactively supervise firms’ compliance with the new regulations, and
will take swift action where firms fall short of desired standards.
The regulator has most recently appointed Nikhil Rathi as Chief Executive Officer of Financial Conduct Authority. Rathi joined the FCA after leading the London Stock Exchange as CEO. Prior to that, he held roles of Non-Executive Director of Turquoise Global Holdings Ltd and Director at Unavista Ltd. Earlier in his career, he had been a part of HM Treasury as Director of Financial Services Group and has led the work pertaining to the UK’s EU and international financial services
interests as a member of the department.
