Britain's financial regulator has ordered unregistered crypto companies to wind up operations and return investors' money
The UK's Financial Conduct Authority (FCA) has ordered unregistered cryptocurrency companies to close down and return money to investors, in line with a new compliance schedule set by the regulator in early 2020.
On January 8, 2021, the UK regulator warned that crypto companies that have not applied to register with the FCA by December 15, 2020, or have withdrawn their application, must cease crypto-related business activities by January 10, 2021. In an email to companies, the FCA wrote that companies "should carefully consider all relevant issues and, where possible, return any funds or crypto assets that fall within the scope of anti-money laundering rules."
In the email, the FCA said it expects cryptocurrency companies to inform customers of the situation and "provide them with any alternative that is in their best interest." The FCA warns that continuing to design cryptographic services for registered cryptographic companies could constitute an offence.
It follows a stark warning from the FCA that consumers investing in cryptocurrencies face a "very high risk".
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