What is the Temporary Registration Regime and who does it apply to?
It is the registration regime which applies to crytoasset firms that begun operations before 10 January 2020 to continue trading while they await full registration with the FCA.
The Financial Conduct Authority (FCA) has established a Temporary Registration Regime to allow existing cryptoasset firms, who have applied to be registered with the FCA, to continue trading. The FCA is advising customers of cryptoasset firms which should have applied to the FCA, but have not done so, to withdraw their cryptoassets or money before 10 January 2021.
New businesses (who began operating after 10 January 2020), are required to obtain full registration with the FCA before conducting business.
The Temporary Registration Regime is for existing cryptoasset businesses which have applied for registration before 16 December 2020, and whose applications are still being assessed. This is to enable those existing businesses to continue to trade after 9 January 2021 until 9 July 2021, pending the FCA’s determination of their application.
The FCA is extending the end date of the Temporary Registrations Regime (TRR) for existing cryptoasset businesses from 9 July 2021 to 31 March 2022.
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.