U.K. authorities say crypto firms ‘fall short’ of AML rules
As global standards on areas such as anti-money laundering emerge, numerous businesses are backing out of failing to comply with regulation.
Britain’s Financial Conduct Authority (FCA) said yesterday that numerous crypto businesses are withdrawing their application to legally register, while failing to meet anti-money laundering and counter-terrorism financing rules.
From the beginning of 2020, businesses performing cryptocurrency activities in the UK needed to comply with the amended Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) and register with the FCA.
‘Unprecedented’ number of businesses withdrawing
The FCA extended their deadline for the Temporary Registration Regime (TRR) for existing crypto firms from 9 July 2021 to 31 March 2022, allowing them to carry on business as they continue their assessments.
— Financial Conduct Authority (@TheFCA) June 3, 2021
“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 said.
Another ninety businesses are currently allowed to continue trading as only temporarily registered, with applications pending determination.
Disciplining a 12-year old
“For those who had assumed that it might turn into a currency – terribly sorry, but this is an asset, and it’s a highly speculative asset which has conducted some funny business and some interesting and totally reprehensible money-laundering activity,” said European Central Bank President (ECB) Christine Lagarde in January.
Roughly twelve years have passed since the initial release of Bitcoin and it seems the crypto space is going through those challenging teenage years, when authority is setting ground rules and curfews. But hold tight Bitcoin, we don’t want you to see you grounded!