Firms providing certain services in the crypto industry are required to be registered with the FCA for money laundering purposes.
With the adoption of the Fifth Money Laundering Directive (5MLD) into UK law, Cryptoasset firms are now 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.
Whilst this is not an FCA authorisation application, firms should be aware that the fast-evolving nature of crypto assets means that the FCA often apply enhanced scrutiny. This results in applicants facing difficult questions from case-officers, delaying and sometimes terminating their registration application.
Firms should be aware that where activities involve other aspects of regulated activities (such as payment services, investment services), they are likely to require additional FCA authorisation.
At RRCA we have been helping cryptoasset firms in various ways, from assessing their exposure to FCA registration requirements (under 5MLD) as well supporting internal AML/CTR processes. Our expert team is here to help firms:
Understand when and how a business needs to be regulated by the FCA and prepare and manage the FCA application
Prepare and manage the 5MLD registration application
Develop and implement the systems, controls, policies and procedures required of a regulated firm
Keep up to speed with regulatory developments with board briefings, and train executives to understand regulation and their responsibilities
Set up back-office processes and suppliers (eg banking, accounting, etc.)
Assess exposure to any other regulatory regimes (in case of cross-border trading)
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At RRCA we provide a comprehensive and tailored service, meeting individual needs and FCA obligations. Whether you are a start-up or an established firm, our expert consultants are here to provide guidance and support.
You can find ample information on our website or if you prefer, simply contact us for an obligation free and confidential discussion about your needs.