The extension period will give the FCA more time to investigate the potential for abuse of anti-money laundering rules across cryptoasset businesses.

The TRR was established last year to allow existing cryptoasset firms that applied for registration before 16 December 2020, and whose applications are still being assessed, to continue trading.

A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations, according to the FCA. This has resulted in an unprecedented number of businesses withdrawing their applications.