Some crypto firms, among which are Revolut and the start-up Copper, will be allowed to continue their operations on the British market even after the end of TRR (Temporary Registration Regime), FCA announced.
The regulator noted that “We have concluded our assessments, and the TRR will close on the 1st of April, for all but for a small number of firms where it is strictly necessary to continue to have temporary registration. This is necessary where a firm may be pursuing an appeal or may have particular winding-down circumstances.”
The regulator still acknowledges that the firms exempt are not assessed “as fit and proper”, but they will still be able to carry on with their business.
By law, crypto firms operating in the UK should comply with the FCA under money laundering regulations. Additional measures are expected in the future, but currently, AML is widely regarded as the mandatory regulatory regime.
However, while FCA is working on its framework, companies were allowed to continue their operations under the so-called TRR that will close on the 1st of April. The list included numerous companies, but the number has significantly reduced, with some withdrawing their applications – B2C2 and Wirex among them.
B2C2 is looking to move its spot operations to the USA, while Wirex is believed to offer its services for UK citizens from Croatia. Presently, there are 12 firms still on TRR, among which Revolut, Copper and Blockchain.com.
Cryptocurrency regulations have been a hot topic for quite a long time, with companies sharing different opinions on the matter. Paysafe, already fully registered by FCA, welcomes the “heightened regulatory oversight”, while others express reserves.
The regulator alone is alleged to face difficulties during the process. People familiar with the matter claim that FCA is currently understaffed, which is believed to have slowed down the process. Currently, only 33 crypto firms have been fully registered.
FCA, on the other hand, claims that many companies failed to meet the AML requirements imposed, which is supposed to explain the insufficient number of registrations. The deadline extension appears amid rumours about a new regulatory regime expected to come any time soon.