UK Crypto Businesses Could Cease Operations After Failing To Meet AML Rules

The governor of the Bank of England, Andrew Bailey, echoed the FCA’s stance on crypto, stressing that UK residents who dabble in the asset class should be prepared to lose their money. 

According to UK law, crypto isn’t covered by the country’s Financial Services Compensation Scheme that helps investors reclaim lost investments when businesses go bust.

The FCA joins many other financial watchdogs across the globe that are cracking down on crypto, citing its use in money laundering and other criminal activity. 

Despite the current hostile stance from regulators, numerous banking institutions have ventured into crypto to cash in on the sizzling demand for the thriving asset class.

FCA Extends its TRR Scheme

ON THURSDAY, the FCA announced that it had extended its temporary registration scheme for crypto service providers to March 31, 2022. 

The move will allow more crypto-focused startups in the UK to carry on with operations while the regulator carries on with its robust assessment. However, firms that pull out from the TRR face immediate closure.

At this point, only five service providers in the UK have been admitted to the FCA’s formal list of registered crypto businesses.

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