United Kingdom’s FCA Gives Another Chance To Crypto Companies

United Kingdom’s FCA gives another chance to register for crypto companies in mid-2021 as we are reading more in the latest crypto news.

UK regulators extended the deadline for crypto businesses today as many crypto companies didn’t register with the FCA and then risked losing their business. However, businesses founded after January 2020 will have to register with the United Kingdom’s FCA. Crypto businesses that registered with the FCA and they can now operate until mid-2021 under a new “temporary registration regime” as per the press release this morning.

The companies that didn’t submit the application by December 15 will not be eligible for the temporary registration regime as the FCA noted:

 “They will need to return cryptoassets to customers and stop trading by 10 January 2021.”

Back in January this year, the UK government demanded from crypto companies to register with the FCA or case getting their business operations ceased after the 2021 deadline. The regulatory body was elected at the time to supervise anti-money laundering and counter-terrorist financing measures for crypto companies. The imposition was proven quite hard for authorities who pointed out the complexity of the undertaking and claiming that the current COVID-19 pandemic limited their ability to assess the business in an accurate manner.
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The FCA explained in a statement:

 “[It] was not able to assess and register all firms that have applied for registration, due to the complexity and standard of the applications received, and the pandemic restricting the FCA’s ability to visit firms as planned.”

Crypto businesses that started operating after January 10, 2020, are required to obtain registration with the FCA before conducting businesses as they were established after the law was pushed forward. The delay is a lifesaver for crypto companies that are operating in the UK but have not received a green light from the regulator as well. CryptoUK which is a local self-regulatory body of crypto companies said that only four businesses were registered while a reported 160 companies turned in their applications.

We have established a Temporary Registration Regime for cryptoasset businesses – https://t.co/0bH7d42pxG

— Financial Conduct Authority (@TheFCA) December 16, 2020

The consortium added that the number could be as high as 300 companies who all risk losing their companies if the deadline continued to be active but today’s announcements will put a stop to these fears. In the meantime, the FCA stated that no matter the registrations, there are no consumer protection powers for the activity done by crypto companies which means that if a company losses a client’s money, the registration will likely do nothing in court.