Adam Holden, CEO of compliance solutions specialist NorthRow, commented:“The extension of the Temporary Registrations Regime (TRR) for cryptoasset businesses reflects a dire lack of progress made by much of the crypto industry when it comes to regulatory compliance. While it’s disappointing that the FCA has been forced to take this step, it gives cryptobusinesses another chance to put in place the robust processes and systems needed to satisfy regulators and build trust in their business and the wider crypto industry.
“Systems that quickly and easily verify customer details at the onboarding phase, and help continuously monitor for risky behaviour that may warrant further investigation over the full lifecycle of that relationship, isn’t as costly or complex as many believe – and can be put in place with minimal friction for customers. At NorthRow we’re working with businesses in this space to help make meeting regulatory requirements as easy as possible for all involved, including those among the first firms registered with the FCA under the current rules.
“Crypto businesses now have until March 2022 to take the appropriate action and ensure they’re not exposed to costly enforcement action which will further erode public trust in cryptoassets. Until the crypto industry takes its regulatory responsibilities seriously, it will continue to attract criticism and be unable to reach its full potential. With eight months to achieve compliance, they need to be taking action today.”