Thursday, April 18, 2024
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Crypto firms fear the FCA deadline for registration

Several crypto companies may be compelled to leave the United Kingdom if they fail to satisfy the Financial Conduct Authority’s registration deadline (FCA). Companies that provide crypto services in the United Kingdom must register with the authorities by March 31 or risk being kicked out of the country. The FCA is in charge of overseeing how digital companies handle money laundering on their platforms.

Last year’s deadline was extended by the watchdog, allowing enterprises that had provisionally registered to finish their registration. It also allowed the businesses to continue operating while they sought full approval. However, the extended deadline is rapidly approaching, and most businesses are still rushing to obtain their licence. Some digital asset enterprises have already withdrawn their applications because they believe they will not be able to meet the deadline. Some of them were unable to meet the anti-money laundering requirements. With only a few days till the deadline, the fate of several high-profile companies, including billion-dollar fintech Revolut, is in jeopardy.

Only 33 digital asset companies have been confirmed as FCA-registered. So far, the agency has turned down 80% of the licensing applications it has received. The bulk of them, according to the watchdog, did not meet the minimum registration standards. According to the regulator, the key purpose is to ensure that registered enterprises can do everything possible to prevent money laundering on their platforms. Additionally, they should be willing to collaborate with the regulator if a money-laundering inquiry is underway. And, as the deadline approaches, several businesses are still functioning under temporary permits. As a result, when the deadline arrives, those businesses will be affected as well.

Companies can withdraw their applications if they believe they do not match the conditions. Firms that do not want to withdraw, however, have the opportunity to appeal the FCA’s refusal, according to the FCA.

Read more: Bank of England wants banks to develop their crypto framework

Kunal Krishan
Kunal Krishan
Kunal is an investment space writer who firmly believes investment is something which should not be a choice but a part of everyone's life.


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