FCA emphasises on role for cryptocurrency companies to be registered

Amount of unregistered cryptocurrency-oriented businesses is continuing to overtake those companies registered with the United Kingdom’s (UK) Financial Conduct Authority (FCA). With becoming the latest company from the cryptocurrency sector to sign-up with the FCA, it got added to the list of 37 companies eligible to offer services in the country, as reported by Cointelegraph. 

On the basis of information by Cointelegraph, a total of seven businesses went through the registration process in 2022 to get approval for money laundering regulations, which includes eToro UK, DRW Global Markets Ltd, Zodia Markets (UK) Limited, Uphold Europe Limited, Rubicon Digital UK Limited and Wintermute Trading Ltd. got registered under FORIS DAX UK LIMITED. FCL made a list of UK-based businesses to continue with cryptocurrency activities without being registered with the FCA for anti-money laundering (AML) reasons. 

According to Cointelegraph, new cryptocurrency-based regulations were introduced in January, 2020, to allow FCA regulate businesses functioning in the space, and enforce AML and counter-terrorism financing regulations. Companies were given a year’s time period to submit applications for the temporary registration regime (TRR), as failure to comply with could have been deemed as a criminal offense. FCA emphasised that neither does it supervise the entire cryptocurrency ecosystem, nor does it hold consumer protection powers.

Moreover, Cointelegraph noted that it was limited in registering UK-oriented cryptocurrency exchanges for AML purposes. Furthermore, it mentioned that TRR was set-up to permit cryptocurrency firms which are intending to register to retain temporary trading rights during the procedure. The FCA claimed that it will continue to process registration applications for cryptocurrency exchanges and service providers to focus on the importance of minimal standards for ensuring compliance with adequate systems to identify and prevent the criminal-activity based funds. It is expected that FCA will continue to keep surveillance over these organisations.

(With insights from Cointelegraph)

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