CP19/29: Recovery of costs of supervising cryptoasset businesses under the anti-money laundering regulations

Read CP19/29 (PDF)[1]

Why we are consulting now

This paper falls outside our normal cycle of fees consultation as we want to ensure we can introduce fees when the gateway for applications opens from January 2020. 

Who this applies to

Any business which undertakes or expects to undertake the cryptoasset activities identified in the Treasury 2019 consultation paper[2].

Background

The Treasury has announced, in the Economic Crime Plan (ECP)[3], 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 are addressing these through the Fifth Money Laundering Directive (5MLD). The UK are doing so through amendment to the MLRs.

Next steps

Please consider our proposals and send us your comments on the questions in this CP by:

• 11 November 2019 – Question 1 on registration fee
• 10 December 2019 – Question 2 on periodic fees

Online response form[4]

You can also:

• email your responses to [email protected] or
• write to: David Cheesman
  Financial Conduct Authority
  12 Endeavour Square
  London E20 1JN

We will consider your comments and publish our feedback on:

• Registration fee – in our Handbook Notice in December 2019
• Periodic fees – in our consultation paper on our fee-rates in April 2020