The UK’s Financial Conduct Authority (FCA) has warned crypto companies that are not officially registered with them.
The warning is related to their failure to communicate and cooperate with the FCA regarding the new rules and regulations for financial promotions.
In a letter sent on Thursday, the FCA expressed concern that a significant number of these crypto firms have chosen not to interact or collaborate with the regulatory authority.
The FCA has been working to help cryptocurrency companies follow the new regulations that were introduced on June 8 and has even given these firms more time to meet the requirements, extending the deadline from October 8 to January 8, 2024.
Despite our best efforts, only 24 firms responded to a survey that was sent to over 150 firms, the regulator said, adding that they are mostly worried about overseas cryptocurrency companies that serve customers in the UK.
“This lack of engagement gives us serious concerns about unregistered firms’ readiness to comply with the new regime,” it continued.
The regulator stated that cryptocurrency companies operating without proper registration and failing to follow the rules may be breaking the law under Section 21 of the UK’s Financial Services and Markets Act 2000.
If found guilty, they could face serious consequences, including up to two years in prison, substantial fines, or a combination of both penalties.
The FCA said in the letter, “We remind all businesses supporting unregistered cryptoasset firms that they should carefully consider their obligations under the Proceeds of Crime Act 2002 (POCA).”
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