The Financial Conduct Authority (FCA) of the United Kingdom has extended the date of completion of the temporary registration of cryptocurrency companies from July 2021 to March 2022.
The Temporary Records Scheme, or TRR, was established last year to allow encryption companies to continue to operate while the FCA was still evaluating their records. With the latest announcement, all encryption companies that have submitted the application before December 16, 2020 have a temporary registration until March 31, 2022.
After becoming the supervisor of anti-money laundering and terrorist financing measures for encryption companies in the UK, the FCA forced all encryption asset companies to comply with the country ALD regulations. The initial deadline for registration was January 10, 2021.
But since the COVID-19 pandemic made site visits difficult, along with “the complexity and standard of the applications received,” the FCA announced the TRR and issued temporary records to all companies that they submitted an application before December 16th. of the TRR was scheduled to end on July 9, 2021.
Temporary registration is limited to companies that were active before January 10, 2020. New companies require full registration.
According to the announcement, an “unprecedented number of companies” withdrew their applications due to their poor operations in relation to the Money Laundering Regulations. “The extended date allows cryptocurrency companies to continue to operate while the FCA continues its solid assessment,” the announcement reads.
The FCA announcement reiterates the risks involved in trading cryptocurrency assets, indicating that an FCA record does not guarantee the protection of customers ’assets. The financial regulator issued a warning earlier this year when Bitcoin (BTC) sank below $ 33,000, emphasizing that investors should be ready to lose all their money while investing in digital currency.