Crypto firms to be required to register with FCA under new law

A range of cryptocurrency businesses could be forced to leave the UK market if they fail to register with the Financial Conduct Authority by Thursday this week.

According to CNBC, from March 31 companies that operate crypto services in the UK must be registered with the FCA.

The regulator had already previously extended the deadline to allow companies on a temporary register to continue trading while they sought full authorisation. The FCA noted that many crypto firms had withdrawn their applications as they were not meeting the required AML standards.

A spokesperson from the FCA said the regulator has approved just 33 applications so far, with more than 80% of the firms it has assessed to date having either withdrawn their applications or been rejected.

The spokesperson commented, “We’ve seen a high number of the cryptoasset businesses applying for registration not meeting standards there to help ensure firms are not used to transfer and or disguise criminal funds.

“Firms that do not meet the expected benchmark can withdraw their application. Firms that decide not to withdraw have the right to appeal our decision to refuse, including through the courts.”

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