Since 10 January 2020, new businesses carrying on cryptoasset activity in the UK must be registered with the FCA before conducting business.
Where the FCA suspects that firms are providing such services without appropriate registration, the FCA has shown that it will not hesitate to take action. The FCA has issued previous warnings against cryptoasset firms that it believes may be providing financial services or products in the UK without the appropriate authorisation. The FCA has issued its latest warning against cryptoasset exchange firm FTX.
Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised or registered. The FCA maintains a list of UK businesses that appear to be carrying on cryptoasset activity that are not registered with the FCA for anti-money laundering purposes.
With further regulatory changes being implemented in the near future, the regulatory landscape that applies to cryptoasset businesses is becoming increasingly more complex. Matched with a more assertive regulator, as the FCA’s latest warning demonstrates, cryptoasset firms will need to navigate changes to the regulatory regime carefully to ensure they remain compliant.