According to the Financial Conduct Authority, a new regulatory framework that will go into effect in October 2027 would require cryptocurrency businesses operating in the UK to reapply for authorisation.
Even businesses that are currently registered under current anti-money laundering regulations are subject to this obligation.
In advance of the more comprehensive framework that will formally regulate exchanges, brokers, token issuers, lending platforms, and DeFi-related activities, the FCA intends to start accepting applications in September.
The announcement comes after new legislation that specifically includes cryptocurrency companies in the ambit of U.K. financial regulations.
Stronger consumer safeguards and more transparent oversight are the goals of the new regime, according to regulators. Participants in the industry anticipate higher compliance costs as well as increased regulatory certainty as a result of the process.
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