The UK’s FCA has become the AML/CTF supervisor for businesses carrying out certain crypto-asset activities under the amended Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs). The crypto-asset activity in scope includes: Crypto-asset exchange provider (including Crypto-asset Automated Teller Machine (ATM), Peer to Peer Providers, Issuing new crypto-assets, e.g Initial Coin Offering (ICO) or Initial Exchange Offerings); and Custodian Wallet Providers.
New businesses carrying out crypto-asset activity in scope of the MLRs must be registered with the FCA before conducting businesses. Existing businesses already conducting crypto-asset activity before 10 January 2020 may continue their business but will need to ensure their compliance with the MLRs with immediate effect.
All existing businesses undertaking crypto-asset activities must be registered by January 2021. Existing Financial Services and Markets Act firms, e-money institutions or payment services businesses undertaking crypto-asset activity will also be required to apply for registration.