British regulator introduced “temporary registration regime” for cryptocurrency companies
FCA Establishes Temporary Registration Regime For Cryptocurrency Firms
Cryptocurrency firms applying for FCA license will be able to operate until July 2021
Cryptocurrency companies not registered in the UK should close by January 2021
International consortium of news organizations developing transparency standards.
UK regulators have extended the deadlines for those cryptocurrency firms that have applied for licenses until July 2021, while the agency is working to eliminate flaws in the registration procedure.
Meanwhile, cryptocurrency companies that did not have time to submit applications by December 15, must return all funds to customers and cease activities by early 2021..
Termination of activity
The UK Financial Conduct Authority (FCA) announced a “temporary registration regime” for the cryptocurrency business on December 16.
The statement says:
“The temporary registration regime is valid for existing cryptocurrency companies that applied for registration before December 16, 2020, whose applications are still pending. This is so that existing firms can continue to operate after January 9, 2021 until July 9, 2021, until the FCA makes a decision on their applications..
According to the press release, the FCA needs more time to review applications submitted by cryptocurrency companies. The British regulator named the COVID-19 pandemic and the complex nature of this industry as the reasons for the delay in processing applications for registration..
Cryptocurrency in the UK
As previously reported by BeInCrypto, the FCA has imposed regulatory oversight on companies that own cryptoassets in the UK from 10 January. At the same time, the department ruled that all existing cryptocurrency firms must register with the FCA..
The FCA also announced that firms that fail to submit bids by December 15 are not eligible for temporary registration. Such companies must cease operations by January 10, 2021, otherwise they face criminal prosecution by the FCA.
Tightening policy FCA
In addition to closing the business, cryptocurrency firms that did not meet the deadline for registration must also return all funds to customers. In addition, the FCA advised UK cryptocurrency investors to make sure they partner with companies listed on its registration portal..
This measure was the latest in the FCA program to tighten supervision in the cryptocurrency industry..
In February, the British regulator increased registration fees for cryptocurrency companies to £ 10,000 ($ 13,500). In October FCA finally implemented its plan and banned retail trade in cryptocurrency derivatives in the UK.
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