Cryptoasset Business in UK: Registration

The FCA’s registration process is relatively simple. The applicants must fill in the application form on the online portal ‘Connect’ and pay the registration fee. When filling out the application form, the applicant must indicate which of the crypto activities require registration under the AML/CTF regime it carries out or plans to carry out. One or more of the following activities can be chosen:

1. fiat-to-crypto exchange;
2. crypto-to-fiat exchange;
3. crypto-to-crypto exchange;
4. operation of a crypto ATM;
5. provision of custodian wallet service;
6. facilitation of peer-to-peer exchange of crypto;
7. participation in Initial Coin Offerings (ICO).

Once the application is submitted, the FCA may take up to 3 months to assess the application. It is important that an applicant fully discloses all the relevant information requested by the FCA in the application form.
The FCA assesses applications based on the information provided including information about the applicant and all key individuals who hold a relevant function to assess whether or not the applicant is fit and proper (as set out in Regulation 58A).
Apart from business and operational matters and the profile of key individuals, the FCA also requires a detailed proposal plan on how the applicant plans to mitigate AML/CFT risk. The FCA mandates that the applicant outline customer on-boarding and due diligence processes along with transaction monitoring and record-keeping procedures.
You can find out more about the FCA’s application process here.

A collaboration between Merkle Science & FinReg