Deadline for crypto firms extended by the FCA

The Financial Conduct Authority (FCA) in the United Kingdom has extended the deadline for crypto firms to be approved.

The decision to extend the deadline until Thursday will give many cryptocurrency companies more time to sign off on their applications.

According to Bloomberg, companies currently listed on the government's temporary register of crypto asset businesses, such as Revolut, will now be given more time if they can demonstrate that they need it.

This evidence will include more time for them to provide additional information on their current application, wind down their operations, or appeal a previous FCA decision.

Despite the fact that over a hundred companies applied for temporary permission, only 12 are currently on the list. While the FCA has given full approval to 33 firms for permanent registration.

The FCA has been "reviewing crypto asset firms’ applications to ensure that 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," according to a statement.

"While we have registered 33 firms, we have seen too many financial crime red flags missed by the crypto asset businesses seeking registration… Worse, we have seen examples where firms do not have the controls necessary to raise red flags in the first place ," the spokesperson said.

The FCA has previously issued warnings about the dangers of cryptocurrency. "While crypto assets and their underlying technologies can offer benefits to financial services firms," the watchdog warned earlier this month.

Crypto assets, according to the FCA, "also present risks to market integrity and consumers, particularly when used as a speculative investment… This is additional to significant risks in relation to financial crime and money laundering."

By fLEXI tEAM