TL;DR Breakdown:
- The UK regulator, FCA, has reportedly extended the operation deadline for crypto companies to the country, awaiting approval.
- Through the extension, the regulator would get more time to assess the applications.
Crypto companies in the United Kingdom (UK), that already filed for registration with the country’s monetary regulator, Financial Conduct Authority (FCA), will continue to operate in the country after January 10. The regulator had ordered crypto businesses to register with them; else they will stop operating in the country after the aforementioned date. However, the FCA has lengthened the operation deadline today.
FCA’s “temporary registration regime” for crypto companies
The development followed a so-called “temporary registration regime” from the regulator for all the crypto companies operating in the country. The temporary is only valid for crypto companies that already applied with the FCA for registration before today. They will be able to continue operating in the country till July 9, 2021, as they await regulatory approval. This will also grant the regulator more time to process the application.
The FCA admitted that it couldn’t assess and register applications from the crypto companies, for some reasons that include “the complexity and standard of the applications received, and the pandemic restricting the FCA’s ability to visit firms as planned.” Following the initial notice from the regulator, companies that failed to register before the deadline will be ordered to stop operating in the country, since they will become illegal.
UK crypto regulation
The UK authorities have been taking a bold stance in regulating the cryptocurrency in the country, especially with respect to the protection of residents. On October 6, the country’s monetary authority, FCA, said it would ban sales of cryptocurrency derivatives to retail investors in the country by January 6 2021. As Cryptopolitan reported, the regulator move was somewhat directed to protect the investors from certain risks involved with such crypto products.
