The UK markets regulator says a significant number of crypto firms are withdrawing their watchdog listing applications after struggling to meet its anti-money laundering standards.
“A considerably high number of companies do not meet the standards required under money laundering regulations, which has resulted in an unprecedented number of companies withdrawing their requests,” said the Financial Conduct Authority in a statement. statement Thursday.
The FCA has said it is extending the end date of its temporary registration regime for existing crypto-asset firms from July 9, 2021 to March 31, 2022. The process is designed to allow firms to continue trading while their requests are evaluated.
Companies that are not part of this regime or that are registered with the FCA risk being subject to the regulatory and civil enforcement powers of the regulator if they continue to operate.
The watchdog also used the statement to issue another warning to investors about the speculative nature of crypto assets.
Customers should be prepared to lose all of their money, the FCA said in the statement. Customers are unlikely to seek compensation schemes, regardless of whether a company has temporary or full registration with the FCA, he said.