Cryptoassets - Are You Compliant?

24 Feb

Introduction

As of 10 January 2021, all cryptoasset firms are required to be registered with the Financial Conduct Authority (FCA) in order to adhere to the Money Laundering Regulations.

Any firm now carrying out cryptoasset activities by way of business in the UK without registration is at risk of facing criminal or civil enforcement action by the FCA.

What are cryptoasset activities?

Cryptoasset activities, for the purpose of the FCA, are those set out in regulation 14A of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. There are three principal categories of activity:

exchanging, or arranging to exchange, cryptoassets for money or one type of cryptoasset for another;
operating a machine, such as a crypto ATM, which uses automated processes to exchange money into cryptoassets or vice versa; and
provision of custodian services for customer’s cryptoassets or private cryptographic keys.

A firm engaging in any of these activities by way of a business in the UK is likely to require to be registered.

Our team are able to advise you in all matters of compliance and regulation, with a specialism in the blockchain and cryptocurrency sector. Please contact Arianne King at aking@costiganking.com with any questions.