On 12 December 2019, the FCA updated its webpage on the new anti-money laundering (AML) and counter-terrorist financing (CTF) regime for crypto-assets.
From 10 January 2020, the FCA will become the AML / CTF supervisor of UK crypto-asset businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (MLR 2017).
The updated FCA webpage sets out a list of crypto-assets activities that come within the scope of the MLR 2017 as per an earlier HM Treasury consultation. The list will be updated once HM Treasury publishes its Policy Statement.
Following its consultation on crypto-asset registration fees, the FCA Board has agreed that the charges will be:
- £2,000 – for businesses with UK crypto-asset income up to £250,000; and
- £10,000 – for businesses with UK crypto-asset income greater than £250,000.
The FCA defines income as the gross inflow from economic benefits (cash, receivables and other assets) recognised in the UK entity’s accounts during the reporting year relating to the provision of the crypto-assets activities specified in the MLR 2017.
The FCA consulted on a flat rate of £5,000 for all crypto-assets businesses, however it decided to introduce a lower fee for businesses within the lower income threshold and raise the fee for those in the higher income threshold to compensate for the reduction in revenue.
The FCA expects to publish detailed feedback in the FCA Handbook Notice at the end of January 2020.