After nearly 20 months of limited feedback from the FCA in respect of the Application, GlobalBlock UK has now received a Warning Notice from the FCA indicating that it is minded to refuse the Application. While the Company continues to analyse the reasons set forth by the FCA in its warning, the FCA reasoning appears to be that based on its review of a limited number of transactions that took place prior to the Company acquiring GlobalBlock UK in July 2021, and that because of that review the FCA suspects that GlobalBlock UK will fail to comply with its obligations under the MLRs.
The Company strongly disagrees with the concerns and conclusions raised by the FCA and firmly asserts that its procedures are in line with the MLRs. The next step in the process is that GlobalBlock UK has until March 23, 2022 to respond to the Warning Notice. The Company is taking advice from leading experts in these matters and will present a rigorous and fulsome response to the FCA. If the FCA, having considered GlobalBlock UK's representations, decides to refuse the Application, GlobalBlock UK will have the right of appeal. GlobalBlock UK will remain under the Temporary Registration Regime and will be able to continue to operate its business while it responds to the FCA, and until a final decision is made by the FCA in respect of the Application.
Rufus Round, CEO of the Company, comments as follows:
"Assets traded on crypto rails are on all counts inherently reflective of a higher standard than traditional finance. Not only are transactions eminently more traceable, but they are also subject to rules that are defined and verified by cryptographic processes and therefore resistant to human operational failings. GlobalBlock UK has engineered FCA compliance into its DNA. Our processes are identical to those that a traditional FCA regulated business would incorporate, save for the fact that the superior features of blockchain technology enhance our controls and procedures to the higher...
Original Source of the original story >> GlobalBlock Provides Update on FCA Application