U.K FCA issued temporary registrations to crypto-asset companies, allow them to continue trading

In an announcement Wednesday, crypto businesses applied to register with the U.K. The Financial Conduct Authority (FCA) may continue to operate under a provisional licensing regime for six months when the governing body resolves the backlog of the application.

FCA has issued temporary registrations to crypto-asset companies that have already submitted applications

According to the FCA, companies that begin operations after January 10, 2020, will be granted temporary registrations between January 9, 2021, and July 9, 2021. Watchdog warns that crypto companies that have not yet applied for registration before December 16, 2020, will not be eligible for the provisional regime.

Due to the coronavirus restrictions on the hits and complexity and standards of the applications received, the FCA said it was unable to evaluate and register all of the companies that applied. Since July of this year, FCA has warned crypto businesses that they will need at least six months to fully process applications ahead of the hard deadline of January 2021.

There have been concerns in the industry that crypto companies could be left on vacant land as the deadline appears to have passed with many applications still pending.

In the announcement, the FCA also warned that companies that did not apply before December 16 must return their crypto assets to customers and cease trading by January 10, 2021.

Companies that fail to do so will violate the law and risk being subject to the criminal and civil enforcement powers of the FCA. The FCA requires any company doing an activity related to crypto-assets in the UK to register and comply with anti-money laundering and counter-terrorism financing requirements.

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