The U.K. financial market regulator, Financial Conduct Authority (FCA), has extended the Temporary Registrations Regime (TRR) for crypto firms to operate until March 31, 2022, even if they are not approved.
The U.K.’s Financial Conduct Authority (FCA) has extended its temporary registration regime (TRR) for existing cryptocurrency businesses. Now crypto firms can operate under a temporary licensing regime until March 31, 2022.
The TRR was established last December to allow existing crypto firms that have already submitted registration applications to operate until July 9, 2021.
The announcement by the Financial Conduct Authority (FCA) to extend the TRR until March 31, 2022, comes as the approval process is substantially delayed on the part of the regulator.
“The Temporary Registration Regime is for existing cryptoasset businesses which have applied for registration before 16 December 2020, and whose applications are still being assessed. This is to enable those existing businesses to continue to trade after 9 January 2021 until 9 July 2021, pending the FCA’s determination of their application” reads the announcement release.
Recently, the FCA had announced that a significant number of crypto businesses in the U.K. were not meeting the required standards under the Anti-Money Laundering regulations and are withdrawing their applications.
To date, only a handful of crypto businesses, including Gemini and Archax, have been cleared by the regulator.
Initially, the FCA set the registration deadline for January 10, 2021, mandating all existing and new crypto companies to register before that. However, the regulatory agency was not able to assess and register all firms due to the complexity and standard of the applications received, and the pandemic restricting its plans.
The extended date now allows British crypto firms to continue carrying on their operations whilst the FCA continues with its robust assessment. The FCA will now only register firms when it's fully confident that the crypto companies are completely compliant with anti-money laundering and anti-terrorism laws.