Regulation 48 Amendment of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017^f1 are amended as follows.

In regulation 3 (general interpretation), in paragraph (1), at the appropriate places insert—

• ““authorised cryptoasset firm” means an authorised person who is authorised to carry on a regulated activity specified by Chapter 2B (cryptoassets) of Part 2 (specified activities) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001;

• “regulated activity” has the meaning given by section 22 of FSMA (regulated activities);

• “specified investment cryptoasset” has the meaning given by article 3 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (interpretation);

• “specified investment cryptoasset firm” means an authorised person who—

  1. (a)

     has permission under Part 4A of FSMA to carry on a regulated activity other than one specified by Chapter 2B (cryptoassets) of Part 2 (specified activities) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, and

  2. (b)

     carries on activity under that permission in relation to specified investment cryptoassets;”;

In regulation 54 (duty to maintain registers of certain relevant persons), for paragraph (1A)^f2 substitute—

“(1A)

The FCA must maintain a register of those relevant persons who—

(a)

are—

(i)

cryptoasset exchange providers, or

(ii)

custodian wallet providers, but

(b)

are not—

(i)

authorised cryptoasset firms, or

(ii)

specified investment cryptoasset firms.”.

After regulation 56A (transitional provision for existing cryptoasset businesses: requirement to register)^f3 insert—

“Requirement that cryptoasset firms acting as cryptoasset exchange providers or custodian wallet providers inform the FCA

56B

(1)

An authorised cryptoasset firm or specified investment cryptoasset firm must, before acting as a cryptoasset exchange provider or a custodian wallet provider or within 28 days of so doing, inform the FCA that it intends, or has begun, to act as such.

(2)

Paragraph (1) does not apply to an authorised cryptoasset firm or specified investment cryptoasset firm which—

(a)

immediately before the date specified by regulation 1(2) of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 (citation, commencement and extent) (“the full commencement day”) was acting as a cryptoasset exchange provider or custodian wallet provider and continues to act as such after that date, and

(b)

informs the FCA that it is acting as such within 30 days beginning with the full commencement day.

(3)

Where an authorised cryptoasset firm or specified investment cryptoasset firm ceases to act as a cryptoasset exchange provider or a custodian wallet provider, it must inform the FCA within 28 days beginning with the day of ceasing to act as such.

(4)

If, at any time after an authorised cryptoasset firm or specified investment cryptoasset firm (“A”) has provided the FCA with any information under this regulation—

(a)

there is a material change affecting any matter contained in that information, or

(b)

it becomes apparent to A that the information contains an inaccuracy,

then A must provide the FCA with details of the change or a correction of the inaccuracy within 30 days beginning with the date of the change or the discovery of the inaccuracy.

(5)

Any information provided to the FCA under this regulation must be in such form and verified in such manner as the FCA may specify.

(6)

Any requirement imposed by this regulation is to be treated as if it were a requirement imposed by or under FSMA.”.

In regulation 77 (power to impose civil penalties: suspension and removal of authorisation) omit paragraph (3)(b).

In Schedule 6 (meaning of “relevant requirement”), after paragraph 10(a) insert—

“(aa)

regulation 56B (requirement that cryptoasset firms acting as cryptoasset exchange providers or custodian wallet providers inform the FCA);”.