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Britain’s regulator FCA allows five crypto firms to operate with temporary registration instead of twelve firms

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Indrani bose Follow

INDIA

Apr, 13 2022

Apr, 13 2022

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Financial Conduct Authority (FCA) which is Britain’s top financial regulator has extended the temporary registration (TRR) list of crypto-asset firms. Five crypto firms were added to the list to continue to operate in the United Kingdom with temporary registration (TRR) which reflects they're still able to trade while their applications are being considered by the U.K. financial services regulator. Initially, names of twelve firms were there in the TRR list which was reduced to five.

At the end of March British financial regulator said that the registration deadline for some crypto firms has been extended so as to meet its regulatory requirements. During that time there were twelve firms on the temporary registration list which has now dropped to five. Last week was the deadline for crypto firms to register with the FCA. But still the applications for these newly added firms are pending. The total number of full registered crypto firms that FCA has approved since August 2020 was around 34 to which these five new firm names were added. According to the updated document on the FCA website, the five firms on the list are Cex.io Ltd., Copper Technologies (UK) Ltd., Global block Ltd., Revolut Ltd., and Moneybrain Ltd. It is not clear how long will these firms continue to be allowed to operate under this temporary registration status.

A new deadline for the firm’s registration to be approved or rejected has not been specified by FCA although extended the review period from July 2021 to March 2022. After April 1, companies that are not on the latest list cannot continue to operate. It is also mentioned on the website that being on the list does not mean the FCA has assessed them as fit and proper. The TRR was occupied by a dozen firms by March 30, and most firms had until April 1 to remain on the list.

Recently a spokesperson for FCA commented that “We have been reviewing crypto-asset firms’ applications to ensure they meet the minimum standards we expect that those who run these firms are fit and proper and that they have adequate systems to identify and prevent flows of money from crime,”.

"This is necessary where a firm may be pursuing an appeal or may have a particular winding down circumstances," it said at the time.

A crypto-asset trading company ITI Digital Limited received approval on Thursday which was the first approval since 25th February bringing the total number of fully registered crypto firms to 34. According to the regulator, it would be hiring 80 employees to help crack down on any problem firms face across its remit. for carrying out crypto asset activities in U.K either FCA has to issue temporary licenses to firms or the firms need to get registered with FCA. Originally these temporary licenses were supposed to get expire at March 2022. Then there was a crackdown on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) compliance.

In the last year, the FCA has ordered Binance Markets Limited to shut down regulated activity in the U.K., and a “shut down or face further action“ order was issued for local Bitcoin ATM operators. registration applications were entirely withdrawn by many crypto firms. Stablecoins used as a means of payment will be included in HM Treasury's existing regulatory framework following a Monday announcement.


Also Read |  Intel introduced Second generation Bitcoin mining chip more efficient


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Indrani bose

CBW - External Analyst

INDIA

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