The United Kingdom\u2019s Financial Conduct Authority (FCA) has extended the end date of crypto-asset companies\u2019 temporary registration from July 2021 to March 2022.<\/p>\n
The Temporary Registrations Regime, or TRR, was established last year to enable crypto businesses to continue trading while their registrations were still being assessed by the FCA. With the latest announcement, any crypto companies that applied before Dec. 16, 2020 have temporary registration until March 31, 2022.<\/p>\n
After becoming the supervisor of Anti-Money Laundering and Counter-Terrorist Financing measures for crypto companies in the United Kingdom, the FCA obliged all crypto-asset businesses to comply with the country\u2019s AML regulations. The initial deadline for the registration was Jan. 10, 2021. <\/p>\n
But since the COVID-19 pandemic made site visits difficult, along with the \u201cthe complexity and standard of the applications received,\u201d the FCA announced the TRR and issued temporary registrations to all businesses that submitted an application before Dec. 16. The initial period of the TRR was set to end on July 9, 2021.<\/p>\n
The temporary registration is limited to businesses that were active prior to Jan. 10, 2020. New companies require full registration.<\/p>\n
According to the announcement, an \u201cunprecedented number of businesses\u201d withdrew their applications due to their substandard operations regarding the Money Laundering Regulations. \u201cThe extended date allows cryptoasset firms to continue to carry on business while the FCA continues with its robust assessment,\u201d the announcement reads.<\/p>\n
The FCA\u2019s announcement reiterates the risks involved in crypto asset trading, stating that an FCA registration does not guarantee the protection of client assets. The financial regulator issued a warning earlier this year when Bitcoin (BTC) took a dive below $33,000, stressing that investors should be ready to lose all their money while investing in crypto.<\/p>\n