| answer text |
<p>The FCA’s competition objective, as set out in section 1E of the Financial Services
and Market Act 2000 (FSMA), requires the FCA to promote effective competition in the
interests of consumers in markets for regulated financial services. Activities relating
to cryptoassets do not constitute regulated financial services, except where a cryptoasset
qualifies as a Specified Investment under the Regulated Activities Order or is e-Money.
The FCA’s competition objective therefore does not apply with respect to most markets
for cryptoassets. Where a cryptoasset is a Specified Investment or e-Money, the cryptoasset
business should already have been registered with the FCA for anti-money laundering
supervision, independently of the new supervisory regime for cryptoasset businesses.</p><p>
</p><p>The FCA’s decision to extend the Temporary Registration Regime for cryptoasset
businesses to 31 March 2022 will allow firms that are currently on the temporary register
to continue operating whilst their applications are assessed, and preserve consumers’
access to a range of cryptoasset firms in the intervening period. This strikes an
appropriate balance between mitigating the risk of money laundering in the cryptoasset
sector, and ensuring that cryptoasset businesses based in the UK, and the customers
they serve, are not subject to undue disruption.</p>
|
|
