[ad_1]
Despite plans to turn the region into a thriving crypto hub, the UK’s financial watchdog says only 41 of the 300 crypto firms’ applications seeking regulatory approval have so far been granted. says.
The UK Financial Conduct Authority (FCA) will implement new regulations focused on cryptocurrencies on 10 January 2020 to supervise companies operating in this space and to enforce the same anti-money laundering (AML ) and subject to countermeasures. Terrorism Financing (CTF) regulation as a corporation in traditional financial markets.
Of the 265 applications that were “decided”, only 15% were approved and registered, 74% of companies denied or withdrew their applications, and 11% were rejected, the FCA said in a statement. The remaining 35 applications have not yet been decided.
The FCA did not explicitly state why the applications were rejected or withdrawn, but provided feedback on ‘high quality’ and ‘low quality’ applications.
A more complete application would include a detailed description of the company’s business model, the roles and responsibilities of business partners and service providers, sources of liquidity, a flow diagram of funds, and an overview of the policies and systems in place to govern It was There are risks, says the report.
Incomplete applications became more prominent when companies used the applications to advertise their products and services, especially when the application process was still ongoing.
“Applicant’s website and marketing materials must not contain any language that gives the impression that making an application for registration is a form of approval or recommendation by the FCA.”
The report suggests that some companies may have abandoned their applications if they were unable to demonstrate that they had sufficient blockchain compliance resources in place to monitor on-chain transactions. increase.
The FCA also strengthened its anti-money laundering stance and required all companies to appoint a money laundering reporter who would be “fully involved” in the application process.
The FCA also stressed that even if a company is approved for registration, such approval does not mean that it is no longer free of obligations.
“Applicants must be aware that being registered is not a one-off form or check-in exercise with further obligations or interactions with the FCA.”
“This feedback will help applicants prepare their registration applications and help us make the process as simple and efficient as possible,” the memo summarizes.
Digital asset companies registered with the FCA to date include Crypto.com, Revolut, CEX.IO, eToro, Wintermute Trading, DRW Global Markets, Copper, Globalblock, Moneybrain and Zodia Markets.
Related: UK authorities split over ban on sale of cryptocurrency investment products
Given that many companies provide international services, the UK FCA will work with other government agencies around the world (especially the US securities regulators and the US We have also confirmed that we are cooperating with our product regulators).
The FCA has emphasized several times that failure to register before conducting business can result in criminal liability.
[ad_2]
Source link
