Thiab digital asset oversight guide for UK digital currency licensing

The Financial Services Corporation (FCA) was established on April 1, 2013 as the UK financial regulator and is headquartered in London, UK. Its first was the Financial Services Agency (FSA).

The FCA has been responsible for the conduct and responsibilities affecting the conduct of UK financial services by the FSA, and has been directly responsible for overseeing the conduct of various financial companies. , promote competition in the financial sector and protect consumers. to the British Parliament and to the Treasury..

In accordance with FCA's Consumer Financial Regulations, all international financial institutions are individually governed to ensure their convenience and security, and the FSCS Complementary Program is designed to protect employees.

Currently, FCA license types and coverage are divided into the following categories:

Crypto organizations are regulated by the MLR.

As part of the review of the “Global Laundering, Financial Terrorism and Transformation 2017” (MLR), the UK's Financial Regulatory Commission (FCA) became the Financial Laundering Prevention and Control Act. Financial Terrorism (AML / CTF) for companies involved in certain cryptocurrencies .. - Assets) regulate the body.

Range monitoring

Use for crypto currency exchange providers (such as automated teller machines, P2P centers, primary coin devices, ICOs or new crypto assets) such as early exchanges) and wallet programs. Existing financial services and law firms, online financial institutions, or payment companies involved in cryptocurrency assets should apply.

how to take care

New companies in UK that operate crypto-assets in the MLR wallet must be registered with the FCA prior to trading.Follow the law. FCA also wants crypto companies.

1. Identify and assess the laundry costs and financial difficulties your business is facing.

2. Establish policies, procedures and controls to reduce the risk that companies use money laundering or financial fraud.

3. Designate a board member or senior manager responsible for MLR compliance, depending on the size and circumstances of the business.

4. We adhere to customer satisfaction when establishing business relationship or sometimes business relationship.

5. Increase your dedication when working with clients who may have a higher risk of laundry / financial abuse. This includes consumers who meet the definition of a clerk.

6. Regularly monitor all clients to ensure that changes are based on their knowledge of the company, business practices and risks.

UK regulators are closely monitoring companies to comply with the new rules, warning that they will act soon if the company fails to meet the standards and poses a risk to the honest industry.

UK STO Rules

According to the guidelines for Cryptoassets published by the FCA in 2019, tokens are classified according to their functions such as Exchange tokens, electronic devices and security tokens. A security token is a token with unique characteristics that meet the definition of a particular product, such as a product or service. Similar to capital expenditures such as equity or ownership, it is allocated to a specific asset and becomes subject to FCA policy.

Just as a license does not need to be published, a company can declare an STO without the consent of the governing body, but every consultant, employee, or financial aide who helps manage token sales still needs the license. FCA approval.

Regulatory sandbox program

This year, the new UK Finance Minister Rishi Sunak and the UK's Financial Supervisory Authority (FCA) announced the new sandbox project. The CFO will develop a digital scalebox for fintech companies looking to test their products and services, launch the second phase of the FCA digital sandbox and introduce management centers for young fintech companies.

Now, businesses can request three types of FCA sandboxes.

Digital sandbox:Because this idea is new, so far only a group of companies have joined the sandbox to implement the original idea and proof of concept, and have not been supported by the bins sand managed.

Regulatory sandbox:This is a sandbox with the longest runtime. For the export company joined the management of the sandbox. It is aimed at people who want to test their product in a real environment with very few real users before promoting it to various groups. people, business.

Regulated daycare:For fintech start-ups, it is aimed at new licensed businesses that need additional support.

108 companies reported entering the 6-batch managed sandbox plan, with some companies entering the sandbox multiple times if they were not planning to start testing in a group for the first time. After the deadline for closing applications at the end of 2020, the FCA has yet to announce the last 7th company to enter the sandbox.

FCA's sandbox program has helped many fintech and large financial firms test the water before investing directly in new products and services. At the same time, the FCA continues to expand its control of sandbox pilots, including the provision of digital sandboxes and control incubation. This is great news for companies looking to join the next sandbox management.