Stock Groups

Crypto firms face an uncertain future in UK. Key deadline has been extended

[ad_1]

The logo of the Financial Conduct Authority.

Getty Images| Bloomberg | Getty Images

On Wednesday, the U.K. Financial Conduct Authority announced that it will give some cryptocurrency companies additional time to register with its regulator. This is in addition to an initial Mar. 31 deadline.

After a temporary registration period ends, only a few companies, such as Revolut (fintech company) and Copper (crypto start-up Copper), will be allowed trading, according to the FCA in an announcement. updateOn its website.

Copper also counts Philip Hammond as an adviser, the ex-Finance Minister of U.K.

The FCA stated that the temporary register will close on Friday, “for all except for a few firms where it’s strictly necessary to maintain temporary registration.”

This is required when a firm might be appealing or have special winding-down situations.

Under money laundering regulations, crypto firms that operate in the U.K. must be registered with FCA. Many companies still have not made it. To allow companies to trade while waiting for full approval, the FCA created a temporary registry.

Recent weeks have seen a significant decrease in the list of companies on the temporary registry. Wirex and B2C2 were among those firms that withdrew their applications.

B2C2 plans to shift its spot trading operations into a U.S. entity while Wirex will offer crypto services to Brits via a Croatian company.

Only 12 companies remain under the temporary arrangement, which includes Revolut and Copper, as well as crypto wallet platform Blockchain.com.

Missing’red flags of crime’

Paysafe is a fintech company that’s on the FCA full register. It said it welcomed “heightened regulatory oversight of the crypto sector.”

Chirag Patel CEO, Paysafe’s digital wallets Division, stated via email, “The U.K.’s registration regime means that a lot of companies will have to leave the U.K. because they cannot meet the necessary standards of risk and compliance.”

Nevertheless, a backlash The FCA’s registration procedure has received criticism from the cryptocurrency industry. CNBC was previously informed by industry sources that the FCA has not been able to process applications quickly because of its insufficient staff.

The FCA claims that a large number of crypto companies are not meeting anti-money laundering requirements. So far, only 33 firms have been added to the entire register.

A spokesperson for the FCA stated via email that while 33 companies have been registered, too many financial crime red alerts have not been seen by those who are seeking registration. Worse, there have been instances where the firms have not had the necessary controls to raise red flags.

British officials set to extend the deadline of the watchdog, just as British officials prepare for a new regulatory regimeAccording to CNBC sources, crypto could be available as early as next week. When asked by CNBC sources, the Treasury department refused to answer questions about these plans.

[ad_2]