LONDON — A “significantly high” variety of cryptocurrency companies are failing to satisfy U.Ok. necessities on stopping cash laundering, the nation’s monetary companies watchdog has warned.

Businesses providing crypto-related companies are required to register with the Financial Conduct Authority. The regulator launched a short lived licensing regime for companies whose purposes have not but been accepted to permit them to proceed buying and selling.

The FCA stated Thursday that it had pushed again the deadline for the so-called Temporary Registration Regime from July 9, 2021, to March 31, 2022.

“A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations resulting in an unprecedented number of businesses withdrawing their applications,” the FCA stated in an announcement.

“The extended date allows cryptoasset firms to continue to carry on business whilst the FCA continues with the robust assessment being undertaken.”

Just 5 crypto firms are at present registered with the FCA. Those embody Tyler and Cameron Winklevoss’ Gemini and British start-up Ziglu. There are dozens of candidates sitting on the Temporary Registration Regime checklist.

Cryptocurrencies like bitcoin have lengthy been dogged by worries over their use in unlawful actions like cash laundering and cyberattacks. That’s as a result of the individuals transacting them do not reveal their identification. Officials have additionally warned concerning the speculative nature of crypto property.

In January, the FCA issued a stark warning to cryptocurrency investors.

“Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money,” the regulator stated.

“If consumers invest in these types of product, they should be prepared to lose all their money.”

The FCA reiterated its stance Thursday, warning that many cryptocurrencies are “highly speculative and can therefore lose value quickly.”

Bank of England Governor Andrew Bailey — who was beforehand chief government of the FCA — final month gave a similar statement. Cryptocurrencies “have no intrinsic value,” he stated, including: “Buy them only if you’re prepared to lose all your money.”