CASP
UK Crypto Asset Service Provider Registration
FCA registration requirements for crypto asset service providers — AML controls, governance, and operational evidence.
Crypto asset service providers (CASPs) in the UK must navigate a complex regulatory landscape to achieve FCA registration. The primary focus is on robust anti-money laundering (AML) controls, effective governance frameworks, and comprehensive operational evidence. These requirements are designed to mitigate financial crime risks and ensure market integrity.
Firms must demonstrate a clear understanding of their AML obligations under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. This includes implementing risk-based customer due diligence, ongoing monitoring, and reporting suspicious activities. Evidence of these controls is critical for registration.
Current approaches, such as using spreadsheets, emails, and shared folders, often lead to governance gaps. These methods lack the necessary audit trails and can result in fragmented data management. Such inefficiencies hinder the ability to provide repeatable evidence of compliance to the FCA.
To strengthen their position, CASPs should establish a centralised governance framework. This involves named owners for each control, board visibility into compliance activities, and documented escalation records. These measures ensure accountability and facilitate timely responses to regulatory inquiries.
Operational evidence should be maintained in a structured manner. Firms must be able to produce documentation that supports their compliance with AML requirements and governance standards. This includes records of training, risk assessments, and internal audits.
Board members must be actively involved in overseeing the compliance programme. Regular updates and reviews should be conducted to ensure the effectiveness of controls. This level of involvement is crucial for maintaining a culture of compliance and readiness for FCA inspections.
RegNexus provides a regulatory operating infrastructure that helps CASPs organise governance, evidence, and reporting. Our platform supports the creation of repeatable compliance processes and enhances readiness for regulatory scrutiny. For more information, visit our CASP solution page.