There has been an extension of the March 31st deadline for the Financial Conduct Authority’s (FCA) registration deadline for chosen crypto companies.
The deadline will be extended until April 1st, but only for a small number of crypto businesses that have yet to get full registration status, according to the regulatory authorities.
The role of the FCA in this scenario
In order to enable crypto companies to continue operating despite their existing status, the FCA has established a temporary register.
The Financial Conduct Authority (FCA) is actively considering and analyzing applications for its AML/CTF regulatory framework.
Other UK-based crypto companies, such as Monolith, Coindirect, CEX, and Blockchain, are included in the Temporary Registration Regime (TRR), along with a few others.
The FCA’s criminal and civil enforcement authorities might be used against crypto companies that have not registered with the financial watchdog.
Since January 10th, 2021, any company that has not been granted temporary registration must have stopped trading.
Only 33 of the more than 100 crypto businesses in the UK that applied for the FCA’s regulation have so far been authorized, with 60 additional crypto firms either facing rejection from the agency or electing to withdraw their application.
The Financial Conduct Authority (FCA) has lately stepped up its crypto regulation efforts, with new rules requiring crypto exchanges and wallets to identify their customers slated to take effect in April.
In December, the Financial Conduct Authority issued a consultation paper on crypto-asset derivatives.
In the last year, China and India have taken a tough stance against the crypto-related activity, putting the sector under increased scrutiny from global authorities.
The impact of regulation on cryptocurrency firms
Companies that move their operations to other nations will be able to continue servicing consumers in the UK even if they relocate to other countries.
Despite withdrawing its application, B2C2 has said that it would continue operating in the United States as a subsidiary of its parent company.
As a result of the FCA’s rejection, several businesses are turning to Lithuania, a country known for its openness to cryptocurrency. A number of enterprises have also set up shop in Switzerland and other European countries.