We have previously posted about how, in January 2020, the UK’s Financial Conduct Authority (FCA) became the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptocurrency businesses in the UK. On December 16, 2020, the FCA announced that cryptocurrency businesses that had filed to register with the FCA could continue operating under a temporary licensing regime for six months as the regulator dealt with a backlog of applications. This was known as the Temporary Registrations Regime (TRR).
On June 3, 2021, the FCA issued a press release that extended the TRR to March 31, 2022. The release stated: “A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations. This has resulted in an unprecedented number of businesses withdrawing their applications. The extended date allows cryptoasset firms to continue to carry on business while the FCA continues with its robust assessment.” The FCA repeated that it will only register firms where it is confident that processes are in place to identify and prevent money laundering.