UK regulator gives selected firms extensions as crypto register deadline nears

The UK's top financial regulator said on Wednesday it has extended the deadline for a select number of firms as its anti-money laundering cryptoasset registration process winds up. 

In an update on its website the Financial Conduct Authority (FCA) said it has concluded its assessments for most firms on the temporary register, which closes on Friday. A small number will continue to have temporary registration "where it is strictly necessary."

Extensions may be necessary where a firm is pursuing an appeal or has particular winding-down circumstances, the regulator said. 

The FCA declined to comment on which firms would be granted the grace period. 

The update rounds off a protracted period of limbo for many crypto firms in the UK. The official, twice-revised deadline by which companies must either cease trading or get approved as part of the FCA’s anti-money laundering regime falls on March 31. Being part of the temporary register has allowed firms to carry on in the UK while awaiting a final decision on applications from the watchdog. 

Wirex, B2C2 and Blockchain.com are among companies which have withdrawn applications to be regulated in the UK in favour of other jurisdictions. 

Several big players in the crypto market — including neobank Revolut and Copper, the custodian — are still listed on the temporary register, awaiting a final decision.

As cited in earlier reports by The Block, a person familiar with the matter said that Revolut expects to continue selling crypto services beyond the March 31 deadline. Copper, meanwhile, recently set up an entity in crypto-friendly Switzerland that could offer a fallback option if its application fails.