LONDON (Reuters) – Many cryptocurrency corporations will not be assembly Britain’s anti-money laundering and financing guidelines and, in consequence, unprecedented numbers of them have withdrawn purposes to register with the nation’s monetary watchdog, it mentioned on Thursday.
The Monetary Conduct Authority (FCA) mentioned it could prolong the date of its non permanent registrations regime from July 9 to the tip of March 2022. The extension will enable crypto corporations to hold on their enterprise whereas the regulator conducts additional checks, it mentioned in an announcement.
The cryptocurrency sector has been plagued by its 12-year life by lax requirements on cash laundering and different illicit actions.
Whereas requirements are broadly seen to have improved, international regulators and policymakers have in latest months voiced considerations over the illicit use of crypto.
Since January, cryptocurrency-related corporations have needed to adjust to UK legal guidelines on anti-money laundering and counter-terrorist financing.
“The FCA will solely register corporations the place it’s assured that processes are in place to establish and forestall this exercise,” it mentioned.
Reporting by Tom Wilson; Modifying by Rachel Armstrong and John Stonestreet