FCA consultation CP19-29 Recovery of costs for cryptoasset businesses

FCA consultation CP19/29: Recovery of costs of supervising cryptoasset businesses

Background

• CP19/29: Recovery of costs of supervising cryptoasset businesses under the anti-money laundering regulations
• Published by the FCA on 15 October 2019
• The FCA will be the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoasset businesses, from 10 January 2020.  
• This Consultation sets out the FCA’s proposals for recovering the costs of this new role.  

Impacts

The Treasury has announced, in the Economic Crime Plan (ECP) that the FCA will be the anti-money laundering and counter terrorist financing (AML/CTF) supervisor of UK cryptoassets businesses under the The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).

Evidence of increased risks from growing use of cryptoassets for illicit activity, as well as risks to consumers and markets has resulted in the Government and financial regulators moving to minimize those risks.  

The EU is addressing these through the Fifth Money Laundering Directive (5MLD). The UK is doing so through amendment to the MLRs.

This Consultation Paper applies to any business which undertakes or expects to undertake the cryptoasset activities identified in the Treasury 2019 consultation paper.

Timeline with relevant dates to be logged on regulatory calendar

• Consultation opens on 15 October 2019
• Consultation closes for Question 1 (registration fee) on 11 November 2019
• Consultation closes for Question 2 (periodic fees) on 10 December 2019

Next steps

All respondents need to send comments to the FCA.