(Bloomberg) — The U.K.’s financial regulator is extending a Thursday deadline for its approval of crypto operations, giving a dozen firms more time to get their applications or affairs in order.
The Financial Conduct Authority said firms on its temporary register of cryptoasset businesses — including digital bank Revolut and cryptocurrency custody firm Copper Technologies — will be given additional time if they can show they require it, such as providing more information for their application, pursuing an appeal against the FCA’s decision or to wind down their operations.
More than a hundred firms applied for temporary permission to operate while their applications were ongoing. Only 12 firms remain on that register.
So far a total of 33 firms have been approved for permanent registration with the FCA, which allows them to continue providing cryptocurrency services from within the U.K. after April 1.
Read More U.K. Faces Crypto Exodus as Firms Sound Off Before FCA Deadline
“We have been reviewing cryptoasset firms’ applications to ensure they meet the minimum standards we expect – that those who run these firms are fit and proper and that they have adequate systems to identify and prevent flows of money from crime,” an FCA spokesperson said in a statement Wednesday.
The crypto industry has warned of an impending exodus of companies moving their operations abroad if they could not gain FCA approval, which requires them to meet strict U.K. anti-money laundering rules. It is still possible for U.K. consumers to access services provided by overseas companies, which approved firms have warned will create an unfair playing field.
Some firms on the temporary register, including Wirex and B2C2, chose to withdraw their applications rather than face a rejection as the deadline neared.
“While we have registered 33 firms, we have seen too many financial crime red flags missed by the cryptoasset businesses seeking registration,” the spokesperson said. “Worse, we have seen examples where firms do not have the controls necessary to raise red flags in the first place.”
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