On 15 October 2019, the FCA published Consultation Paper 19/29: Recovery of costs of supervising cryptoasset businesses under the anti-money laundering regulations – fees proposals (CP19/29). From 10 January 2020, the FCA will become the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoassets businesses. In CP19/29 the FCA sets out its proposals for recovering the costs of the new role.

In April 2019, HM Treasury consulted on transposing the Fifth Anti-Money Laundering Directive which introduces new requirements for certain cryptoasset businesses. These requirements will be established by HM Treasury’s proposed amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

In CP19/29 the FCA refers to businesses carrying on cryptoasset activities that will be included in the scope of the amended MLRs as ‘cryptoasset businesses’.

HM Treasury has not yet finalised the activities to be included in the scope of the MLRs, and the requirements that cryptoasset businesses will need to comply with. However, in CP19/29 the FCA is consulting on the basis of HM Treasury’s proposals to ensure that it can introduce registration fees when the gateway opens for applications.

The fees proposed in CP19/29:

  • a registration fee of £5,000; and
  • annual periodic fees based on income.

The deadline for comments on the proposed registration fee is 11 November 2019. The deadline for comments on periodic fees based on income is 10 December 2019.

The FCA will consider the responses to the consultation and intends to publish feedback on registration fees in December 2019, and on periodic fees in April 2020.