The UK’s top financial watchdog is extending the period during which digital currency companies can function even if they haven’t been legally allowed to do so. After receiving an unusual amount of applications from digital currency companies, the regulator is extending the grace period for the third time.
The Financial Conduct Authority (FCA) announced that the Temporary Registration Regime (TRR) for existing digital currency businesses in the United Kingdom had been extended until March 2022. The FCA claimed in its announcement that the extended deadline permits crypto-asset firms to continue doing business while the FCA conducts its rigorous evaluation.
The TRR was founded late last year to allow digital currency businesses to continue trading if they registered for registration before December 16. On July 9, 2021, the TRR was set to cease.
Regulators in the United Kingdom are concerned about digital currency companies failing to meet their anti-money laundering duties, according to CoinGeek. Since January 2020, only five digital currency firms have registered with the FCA, according to John Glen, the Treasury’s economic secretary.
The majority of the companies that had filed for registration had withdrawn, according to Glenn. Over 90% of the enterprises that have been reviewed so far have removed their application due to the FCA’s intervention.
There are 167 crypto asset companies with excellent applications.
The FCA pounded this point home in its most recent pronouncement, alleging that most businesses have failed to meet their AML standards.
“A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations. This has resulted in an unprecedented number of businesses withdrawing their applications,” the regulator stated.
According to the FCA, anti-money laundering and counter-terrorist financing rules are designed to safeguard businesses from processing monies obtained through illicit activities. As a result, this is one area where it is unwilling to make concessions.
“While this is not the only element that the FCA will assess about an applicant, the FCA will only register firms where it is confident that processes are in place to identify and prevent this activity.”