Crypto Firms' Registration

Rahman Ravelli Solicitors


Rahman Ravelli is known for its sophisticated, bespoke and robust representation of corporates, senior business executives and professionals in national and international matters.
It is one of the fastest-growing and most highly-regarded, market-leading legal practices in its field. This is due to its achievements in criminal and regulatory investigations and large-scale commercial disputes involving corporate wrongdoing and multi-jurisdictional enforcement, and its asset recovery, internal investigations and compliance expertise.
The firm’s global reach, experienced litigators and network of trusted partner firms ensure it can address legal matters for clients anywhere in the world. It combines astute business intelligence and shrewd legal expertise with proactive, creative strategies to secure the best possible outcome for all its clients.
Rahman Ravelli’s achievements in certain cases have even helped shape the law. It is regularly engaged by other law firms to provide independent advice.

Angelika Hellweger of Rahman Ravelli considers the figures for cryptocurrency firms registering with the Financial Conduct Authority.
UK Criminal Law
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Angelika Hellweger of Rahman Ravelli considers the figures for cryptocurrency firms registering with the Financial Conduct Authority.

Fewer than one in seven cryptocurrency firms have been successful in registering with the Financial Conduct Authority (FCA).

High risk of money laundering has been cited as the main reason why only 47 companies out of 344 that applied were successfully registered between January 2020 and April this year.

The FCA figures show that of the 344 applications, 233 were withdrawn, 48 were rejected and decisions on 16 were still pending at the time the data was produced.

The latest annual Treasury report on efforts to tackle money laundering and terrorist financing says the FCA's robust assessment of firms "identified significant weaknesses'' in money laundering controls. This led to "a large number of companies withdrawing their applications or being rejected or refused by the FCA''.

The figures emphasise the high standard that the FCA is demanding of firms that are looking to provide crypto-related services. The FCA has been the anti-money laundering supervisor for crypto businesses in the UK for four and a half years.

But its stance may be at odds with the government's often repeated aim of making the UK a global hub for crypto.

The FCA's cautious approach to crypto has not always been welcomed by government ministers. Economic Secretary to the Treasury, Bim Afolami, has stated that while the FCA is broadly "working with us'', he has argued that the FCA risks undermining the entrepreneurial spirit that is behind much of the crypto sector.

It is vitally important that the FCA strikes the right balance in the future. One the one hand, it needs to uphold high standards, which ultimately protect the overall crypto market and those investing in it. But on the other hand, regulation should not endanger the entrepreneurial spirit of the crypto world and the advantages that can bring.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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