UK introduces temporary registration regime for crypto firms

Cryptoasset businesses awaiting regulatory approval may operate under a ‘Temporary Registration Regime’. It will run until 9 July 2021, the UK Financial Conduct Authority said.

We have established a Temporary Registration Regime for cryptoasset businesses — https://t.co/0bH7d42pxG

— Financial Conduct Authority (@TheFCA) December 16, 2020

The FCA had planned to complete the registration of cryptoasset firms by 10 January 2021. However, due to difficulties and standards in the assessment process and the COVID-19 pandemic, a backlog formed.

The Temporary Regime applies to existing crypto firms that had applied for registration by 16 December 2020 and whose applications are still under assessment, the regulator said.

Organizations that had not submitted their documents by 15 December must cease operations by 10 January 2021 and return client funds. The regulator advised the latter to check the register to verify which firms are authorised to conduct activities.

To date, the FCA has granted approvals to two units of the Gemini crypto exchange, the Ziglu payments service, and the Archax platform for trading digital securities.

Data: Financial Conduct Authority (FCA).

More than 90 applications remain under consideration by the regulator, including from the Bitstamp exchange, OTC platform B2C2 and the crypto bank Galaxy Digital run by Mike Novogratz.

Cryptoasset Firms With Temporary Registration by ForkLog on Scribd

As a reminder, in October the FCA prohibited the sale of derivatives and exchange-traded notes based on cryptocurrencies to retail investors.

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