Print this article

AML crypto-asset registration takes another step in the UK

Chris Hamblin

13 January 2021

Last month the FCA established a temporary registration regime to allow existing cryptoasset firms which have applied to be registered with it to continue trading. The deadline for such registration was 10 January. Wealth management firms should check to see whether any of the crypto-asset firms with which they deal are not registered.

The FCA is stressing the temporary nature of such a registration. It has written: "By placing firms on our list of firms with temporary registration, this does not mean that the FCA has undertaken fit and proper checks on a firm, nor that we have determined an application for the purposes of the Money Laundering Regulations. To become fully registered, crypto-asset businesses regulated by us under the MLRs and any person who is an officer, manager and beneficial owner in the business, will be subject to the fit and proper requirements under Regulation 58A of the MLRs.

"Any officer, manager and beneficial owner must pass the fit and proper test before the business can be fully registered, or remain registered, with us."

This time last year, the FCA became the anti-money-laundering and anti-terrorist-finance supervisor of crypto-asset businesses in line with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

On Monday the FCA issued a dire warning to the effect that investors ought to be prepared to "lose all their money" if they invest it in crypto-currencies in general and Bitcoin in particular. By all accounts, this sent the price of Bitcoin plummeting.

The regulator’s main concerns about high-return investments in crypto-assets are as follows.