New cryptoasset firms must be compliant with the Money Laundering Regulations (MLRs) and register with the Financial Conduct Authority (FCA) before conducting any business. Firms trading before 10 January 2020 had until 10 January 2021 to register, or stop cryptoasset activities. Firms that applied were added the the Temporary Registrations Regime (TRR) and will need to become fully registered by the FCA by 31 March 2022. We have helped a number of firms with the registration process:

  1. We can help you to prepare and submit your application

  2. We can review your application before you submit it to the FCA

  3. If you would like support answering FCA questions and/or offer specialist support preparing or updating your policies, processes, systems and controls then we can offer competitive hourly rate.

The registration process is not simple and we’re aware that many firms are facing difficult questions from the FCA. Shortcomings with the application often include:

  • Firms having inadequate systems and controls in place to mitigate risk. For example, not having enhanced due diligence (EDD) procedures

  • Cryptoasset firms based overseas but still targeting UK customers will incur problems when the firm or any senior managers are not based in the UK

  • Not understanding the FCA requirements and terminology, so providing inadequate responses to questions the FCA raise

  • Issues with senior managers passing the 'fit and proper' tests

  • An over-reliance on 'know your customer' automated tools for identification and verification of customers’ identities and/or transaction monitoring vendors as this can pose problems with the accuracy of services provided

We find that many firms will benefit from having a compliance partner such as Compliancy Services to support them with their application. If you require support then please do get in touch either by telephone or using the form opposite.