Regulation 11 Penalties for failure to apply due diligence proceduresI1

Subject to paragraph (2), if a UK reporting cryptoasset service provider fails to comply with regulation 4(1), the UK reporting cryptoasset service provider is liable to a penalty not exceeding £100 for each reportable user or reportable person in respect of which the UK reporting cryptoasset service provider fails to apply the due diligence procedures in regulation 4(1).

Where the failure in question is a failure to obtain a valid self-certification required by the rules, the UK reporting cryptoasset service provider is liable to a penalty not exceeding £300 for each reportable user or reportable person in respect of which the UK reporting cryptoasset service provider fails to apply the due diligence procedures in regulation 4(1).