The UK’s top financial regulator on Thursday set out a number of concerns it believes crypto firms should be keeping in mind as the deadline approaches for inclusion on its AML cryptoasset register.
In a mildly worded statement, the Financial Conduct Authority (FCA) highlighted the importance of being clear with customers, taking into account prudential and custody considerations and assessment of risks related to financial crime.
The regulator said that it expects firms to check against its unregistered cryptoasset list before doing business. It also said that it would continue to monitor the use of cryptoassets in custody arrangements and “act where appropriate, supporting responsible innovation, while protecting consumers and ensuring market integrity.”
The statement comes amid a backdrop of confusion about the future of a number of high-profile crypto providers in the UK. Both custody service Copper and neobanking giant Revolut are among the firms waiting to hear the outcome of their applications to be included on its register, as time marches on towards the deadline of March 31.
Those not included on the register will have to cease crypto activity in the UK.
Ahead of the deadline, firms have even begun to pull out of the UK market in favor of other jurisdictions. SBI-owned B2C2 Ltd., one of the crypto sector’s largest market makers, withdrew from the temporary register earlier this month — effectively ending its application.
Sources suggest B2C2 is far from the only crypto firm packing up its UK business, but as of yet, The Block hasn’t been able to confirm which other companies are following suit.
One such firm on the temporary register, which a source described but refused to name, is also said to have been left with “no choice but to withdraw” and look for alternative locations for its crypto activities.