Cryptocurrency Update: AML Registration And FCA Intervention In Authorised Crypto Business

Crypto businesses clearly remain high on the Regulator's agenda. Two developments are of note.

1. Extension of deadline for AML registration. Since 10 January 2020 crypto businesses have been part of the regulated sector for money laundering purposes, and have been required to register with the FCA. Businesses which applied for registration before 16 December 2020 were placed under a Temporary Registrations Regime. On 3 June this year, the FCA announced that it would be extending that Regime from 9 July 2021 to 31 March next year. This decision was taken after many applicant businesses had failed to implement the required standards under the Money Laundering Regulations. As it stands there are only 9 firms which are registered, having met the requirements. Over 70 have are on the Temporary Register. By comparison there are 111 firms without any registration against which, as noted by Nikhil Rathi in a speech on 22 June, the FCA will take action where appropriate.