UK crypto businesses have been advised by the country’s financial watchdog to apply for registration as quickly as possible. This will grant the regulator more time to review the applications as well as to raise follow-up questions with the companies, conducting crypto-related activities in the country.
FCA urge UK crypto businesses to apply for a license quickly
More like a warning, the financial watchdog, Financial Conduct Authority (FCA) recently issued a report, urging UK crypto businesses to apply for a license with them quickly. Early in January, the FCA was mandated to oversee AML and counter-terrorist financing for UK crypto businesses.
Afterward, the regulator began calling for registration for cryptocurrency business activities in the country before 2021. This cover for such businesses operating in the country before FCA’s appointment, precisely on January 10. However, FCA’s latest report urged these businesses to apply for registration before the end of this month.
The FCA explained in the report:
The June 30 date allows the FCA to review submitted applications and raise any follow-up questions with firms, with enough time for that process to be completed before January 10, 2021.
Need for registration
Probably, the need for crypto business registration follows the FATF’s “Travel Rule.” This is more like a rule aimed at checking money laundering acts. Basically, it requires regulated firms to spell out information about suspicious transactions, to curb money laundering with cryptocurrencies.
UK Crypto businesses, which started operating after January 10, must have been registered with the regulator. Likewise, other related companies are trying to expand their activities in the country. Meanwhile, the regulator will closely supervise these businesses for compliance purposes, per the report.