‘Significantly high number’ of cryptocurrency firms have failed to meet UK trade standards and struggle to meet anti-money laundering rules, says UK financial regulator mentionned Last week.
obligatory register with the Financial Conduct Authority (FCA) and comply with local regulations on money laundering, terrorist financing and transfer of funds.As of January 2020, crypto companies operating in the UK are
Additionally, last December, the agency granted temporary registration to existing companies, which will allow crypto companies to continue operating while their applications are still being assessed.
The FCA said many companies failed to comply with the regulations, resulting in an unprecedented number of companies being removed from their trade applications under regulator oversight.
Only five companies have successfully registered with the FCA. Almost 90 others have been granted temporary registration to operate while awaiting a decision. “Appearing on this listing does not mean that the FCA assessed them as suitable and appropriate, ”said the regulator.
The registration deadline for the Temporary Regime has been extended from July 9, 2021 to March 31, 2022 for existing crypto companies.
“The FCA will only register companies when it is satisfied that processes are in place to identify and prevent such activity,” the agency said in a statement, referring to money laundering and terrorist financing.
Those who do not meet the requirements can no longer trade digital currencies and could face fines or legal action if they refuse to close.
The FCA ledger follows growing concerns about the cryptocurrency since its first appearance over a decade ago. The digital market is known for its lack of regulation and oversight and is often exploited by organized crime.
Last January, the British regulator warned of the risks associated with speculative investments involving crypto-assets and said that consumers who invest in these types of products “should be prepared to lose all their money.”
Likewise, the President of the European Central Bank Christine Lagard called earlier this year for the adoption of global Bitcoin regulations to prevent money laundering and other illegal practices.
“(Bitcoin) is a highly speculative asset, which has conducted some fun and interesting and totally reprehensible money laundering and money laundering activities,” she said.
“There must be regulations. It has to be applied and agreed, ”Lagard said.