The crypto companies are evolving thanks to interesting projects. However, questions regarding the regulations continue to affect the industry. Recently, the U.K.’s chief financial regulator released a statement connected with the crypto industry. According to the announcement, any company that is involved in the crypto asset activity must submit their completed applications by June 30.
Interestingly, the hard deadline for applications is January 10, 2021. However, the regulator wants to spend six months reviewing the applications by the crypto companies. Based on the information provided by the Financial Conduct Authority (FCA), the June 30 deadline allows the FCA to review submitted applications. Moreover, thanks to this decision, the regulator will be able to work with crypto companies to answer all related questions.
Companies should remember that without registration, they will have no other option rather than stop all activities in the U.K. Thus, they need to comply with regulations by January 10, 2021.
Authorities and crypto companies
Interestingly, the Financial Conduct Authority first told companies they would need to register in January. Moreover, the U.K. adopted the Financial Action Task Force’s “Travel Rule” recommendation into national law. The law made the regulator responsible for ensuring all crypto companies follow the new anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.
Last year, the FCA issued guidance on regulation for cryptocurrencies. Importantly, it highlighted what types of tokens currently fall under its jurisdiction.
Interestingly, in 2018 the Financial Conduct Authority started welcoming crypto startups into its regulatory sandbox. This initiative allows businesses to set up as well as to test new products and services with temporary and provisory authorization from the FCA.
It is worth noting that, the FCA appointed its new chief executive Nikhil Rathi. He used to work as a director of the London Stock Exchange.
Crypto companies should submit their applications by the end of the month. Hopefully, the FCA is ready to help them, and companies do not have to worry about unfair treatment.