5MLD temporary crypto regime

Dec 17, 2020 12:00:00 AM

What is happening?

The FCA has established, from 16 December 2020, a Temporary Registration Regime to allow existing cryptoasset firms that have applied to be registered with the FCA to continue trading. It is also advising customers of cryptoasset firms which should have applied to the FCA for registration, but have not done so, to withdraw their cryptoassets or money before 10 January 2021.

What do you need to do?

From 10 January 2020, the FCA became the anti-money laundering and counter-terrorist financing supervisor for cryptoasset firms, including firms that exchange money to and from cryptoassets and those that safeguard their customers’ cryptoassets. From this date, existing cryptoasset businesses (i.e. firms operating immediately before 10 January 2020) have had to comply with the Money Laundering Regulations; such firms were required to be registered with the FCA by 10 January 2021. New businesses (that began operating after 10 January 2020), are required to obtain full registration with the FCA before conducting business.

The Temporary Registration Regime is for existing cryptoasset businesses that applied for registration before 16 December 2020, and whose applications are still being assessed. This is to enable those businesses to continue to trade after 9 January 2021 and until 9 July 2021, pending the FCA’s determination of their application.

Firms that did not submit an application by 15 December 2020 will not be eligible for the temporary registration regime and they will need to return cryptoassets to customers and stop trading by 10 January 2021. Firms that do not stop trading by that date will be at risk of being subject to the FCA’s criminal and civil enforcement powers.

How can we help you?

If you’d like to know more about how we can help you with your cryptoasset arrangements or with any other aspect of FCA compliance, our expert team is here to help.

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