Are you seeking FCA crypto registration (also known as the FCA crypto license UK or crypto exchange license)? This guide covers everything you need to know about the UK cryptocurrency license, including rules, requirements, and application assistance.
What Is the FCA Crypto License UK?
The FCA crypto license UK is a registration with the Financial Conduct Authority (FCA) under the Anti-Money Laundering/Counter-Terrorist Financing (AML/CTF) regime. While not technically a "license," this registration is mandatory for businesses providing certain crypto services from the UK.
Key Points:
- Required for cryptoasset exchange providers and custodian wallet providers.
- Ensures compliance with the Money Laundering Regulations 2017 (MLRs 2017).
- Unlike HMRC-registered businesses (e.g., real estate agencies), crypto services must register with the FCA.
Understanding the Cryptoassets AML/CTF Regime
The UK enforces strict AML/CTF laws to combat financial crimes. Since January 10, 2020, crypto businesses are classified as "relevant persons" under the Fifth Anti-Money Laundering Directive (5MLD), requiring:
- Monitoring suspicious activities.
- Reporting to the National Crime Agency (NCA) and HMRC.
Differences Between UK and EU Regulations:
- Broader Scope: Covers crypto-to-crypto exchanges, crypto ATMs, and asset issuance.
- Definition of Cryptoassets: Includes any digital representation of value on DLT (e.g., blockchain).
- Custodian Wallets: Unique UK definition under the Cryptoasset Taskforce.
Who Needs FCA Crypto Registration?
UK-Based Businesses
- Companies with a UK-registered office or operational base.
- Crypto ATM operators (even with a single machine in London).
Non-UK Businesses
- Registration is required only if services are offered from within the UK.
Exemptions:
- Non-custodial wallet providers (e.g., open-source software developers).
- Occasional transactions (e.g., personal crypto sales not conducted "by way of business").
Cryptoassets Covered Under the Regime
Regulated cryptoassets include:
- Exchange tokens (e.g., Bitcoin).
- Utility tokens (if tradable outside closed-loop systems).
- In-game currencies (if exchangeable for external value).
Excluded: Rights/interest in cryptoassets (e.g., derivatives).
Services Requiring Registration
1. Cryptoasset Exchange Providers
Activities requiring registration:
- Fiat-to-crypto, crypto-to-fiat, or crypto-to-crypto exchanges.
- Operating crypto ATMs.
- Facilitating Initial Coin Offerings (ICOs).
👉 Learn how to apply for a crypto exchange license
Exclusions:
- Decentralized exchanges (DEXes): No registration if no income is derived from transactions.
- Merchants accepting crypto: No registration for payment-only use.
2. Custodian Wallet Providers
Businesses safeguarding client cryptoassets or private keys must register.
Excluded: Non-custodial wallet providers.
Application Process
Required Documents:
Beneficial Ownership/Management Details:
- CVs, ID proofs, and Fit & Proper Test results.
Business Plan:
- Budget forecasts, marketing strategies, and wallet addresses.
Risk Management Policies:
- IT risk, liquidity, AML/CTF, and disaster recovery plans.
AML/CTF Policy:
- Must align with FATF and JMLSG guidelines.
Fees:
- Application: £2,000 (income ≤£250K) or £10,000 (income >£250K).
- Annual Fee: Based on cryptoasset income.
Common Reasons for Rejection
- Weak compliance frameworks.
- Unqualified management.
- Incomplete documentation.
👉 Get expert help with your FCA application
FAQ
1. Do EU-licensed crypto firms need UK registration?
No, unless operating from the UK.
2. How long does approval take?
~3 months if the application is complete.
3. Can I appeal a rejection?
Yes, via the Upper Tribunal.
Need Help?
For tailored assistance with FCA crypto registration, contact our team.
Disclaimer: This content is for informational purposes only and does not constitute legal advice.
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