There continues to be questions about how regulation should be implemented for cryptoassets, with the latest HMT consultation closing on 25 October 2020. We await the outcome with anticipation, similarly to 2018. Back then a Cryptoasset TaskForce was formed, and many firms welcomed the step as they saw advantages in being authorised and regulated by the Financial Conduct Authority (FCA). What transpired could best be described as greater clarification of the regulatory perimeter, rather than sector wide regulation.

There is some development though, with the amended Money Laundering Regulations (MLRs), adopting the Fifth Money Laundering Directive (5MLD) into UK law. Cryptoasset firms are required to be compliant with the MLRs and register with the FCA. Any new firm has to register before conducting business, whereas firms trading before 10 January 2020 had until 10 January 2021 to register, or stop cryptoasset activities. The registration process is not simple and we’re aware that many firms are facing difficult questions from the FCA.

With a dedicated Cryptoasset team, we are well positioned to help you navigate the 5MLD registration process and the regulatory environment. Not only do we have in-depth knowledge of the regulations and emerging issues, but we know a great deal about E-money and Financial Crime, so can help you:

  • Understand when and how your business needs to be regulated by the FCA and prepare and manage your FCA application 

  • Prepare and manage your 5MLD registration, or offer specialist services at an agreed hourly or fixed rate to help you answer FCA questions and manage any changes needed to your policies, processes, systems or controls

  • Develop your financial crime risk framework and carry out the mandatory annual independent risk assessment that is required under the MLRs

  • Develop the onboarding and due diligence processes required under the MLRs

  • Develop and implement the systems, controls, policies and procedures required of a regulated firm

  • Keep up to speed with regulatory developments with our board briefings and train executives to understand regulation and their Senior Manager and Certification responsibilities

  • With offer e-learning, face to face and remote regulatory training, and clients also enjoy the use of our client portal with its compliance management tools

We’ve already helped a number of well-known crypto brands stay ahead in the race to market and can use our market-leading experience to help you.

Compliancy Services is a Community Member of CryptoUK:

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Related Knowledge and Expertise

FCA Authorisation

Managed over 1,100 new applications and won awards in recognition of the efficiency, effectiveness and quality of our service
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Financial Crime

Compliance support to a range of firms, with a special emphasis on Banking, Payment Services, e-Money and Cryptocurrency
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Cryptoasset businesses have needed to comply with Money Laundering Regulations (MLRs) since the 10th January 2020, and will need to be registered by the FCA before the 10th January 2021, or stop all activity
Find out more