The UK's market regulator says a large number of cryptocurrency companies have withdrawn registration applications after failing to meet anti-money laundering regulatory standards. The Financial Conduct Authority (FCA) said in a statement on Thursday that an unprecedented number of companies had withdrawn their applications because they had failed to meet the standards set out in anti-money laundering rules.
The FCA said it would extend the deadline for the provisional registration mechanism for existing crypto asset companies from July 9, 2021, to March 31, 2022. The process is designed to allow companies to continue trading while their registration applications are being assessed.
Companies that do not participate in the scheme or are not registered with the FCA risk being exposed to criminal and civil enforcement powers by regulators if they continue to trade.
The FCA also used its statement to remind investors again of the speculative nature of crypto assets.
'Consumers should be prepared to lose their money,' the FCA said in a statement. 'There may be no recourse for compensation, whether the issue is temporary or fully registered with the FCA.'