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Crypto Firms Scramble For Registration As FCA Deadline Nears

FCA warning
FCA warning

Several crypto companies could be forced to exit the U.K. if they could not meet the registration deadline set by the Financial Conduct Authority (FCA). From March 31, companies operating crypto services in Britain must be registered with the regulator or face being ousted from the country. The FCA oversees how digital firms deal with money laundering on their platforms.

Many Firms In Dilemma As Deadline Nears

The watchdog extended the deadline from last year, which allowed firms that have registered temporarily to complete their registration. It also gave the firms the right to continue operating while they sought full authorization. However, the extended deadline is very close and most firms are still scrambling to get their license.

Already, some digital assets firms that feel they can’t meet the deadline have withdrawn their applications. Some of them couldn’t meet the required anti-money laundering standard. With few days left on the deadline, the fate of several top firms, including billion-dollar fintech Revolut, hangs in the balance.

Only 33 digital asset firms have been confirmed registered with the FCA. So far, the regulator has rejected 80% of the applications filed for a license. According to the watchdog, the majority of them did not meet the basic requirements for registration.

The FCA Could Sweep Off Unregistered Crypto Firms

The regulator noted that the main goal is to ensure that registered firms can do all it takes to prevent the use of their platforms for money laundering. Additionally, they should be flexible enough to work with the regulator if there is an investigation into money-laundering acts.

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And as the deadline approaches, some companies are still operating on the temporary authorization. This means those companies will also be affected when the deadline reaches.

Companies that believe they do not meet the requirements can withdraw their applications. However, firms that do not want to withdraw have the right to appeal the regulator’s decision to refuse, according to the FCA.

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