Many of Britain’s crypto firms are failing to meet required anti-money laundering and counter-terrorism financing laws, the country’s financial services watchdog said on Thursday. Since January, crypto firms in the U.K. have been required to register with the Financial Conduct Authority to ensure regulatory compliance in these areas.
Fast Facts:
- The FCA established a temporary registration regime to allow such businesses to continue trading while their application is being processed. In light of this compliance shortfall, the regime’s deadline has been pushed back from July 9 this year to March 31, 2022.
- “A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations resulting in an unprecedented number of businesses withdrawing their applications,” the FCA said in a statement, adding: “The extended date allows cryptoasset firms to continue to carry on business whilst the FCA continues with the robust assessment being undertaken.”
- Currently, five companies are registered with the FCA, including Tyler and Cameron Winklevoss’ Gemini, Digitvault, the digital asset custody business of parent company Diginex, and British start-up Ziglu.