FCA will regulate the British crypto industry
All companies involved in cryptocurrency activities in the UK are subject to the scope of the regulator.
The UK Financial Regulatory Authority (FCA) is ready to take on a more important role in regulating the cryptocurrency industry. As part of the latter decision, the FCA will monitor the implementation of the requirements for the control of money laundering (AML) and terrorist financing (CTF) by cryptocurrency companies.
FCA has always been at the forefront of most regulatory authorities, curbing the spread of dubious businesses through a variety of restrictive tactics and strategies. Thus, all companies involved in cryptocurrency activities in the UK are subject to the scope of the regulator. The FCA will require them to implement several new preventive measures and policies aimed at stopping abuse.
This step can hardly be called a sensation, given the tendency to abuse in the crypto space, which today remains one of the most vulnerable industries.
FCA Introduces New Requirements for Cryptocurrency Companies
The new requirements are primarily focused on identifying and assessing the risks of money laundering and terrorist financing. Historically, these are the most vulnerable areas of companies operating in the cryptocurrency industry. In addition, the FCA will require the appointment of a member of the board of directors or one of the managers responsible for compliance.
Among other things, companies will need to verify customers and their transactions. First of all, special attention should be paid to clients with a high degree of risk in the context of money laundering or terrorist financing.
The regulator intends to immediately demand the implementation of new rules. Existing companies operating in the field of cryptocurrencies as of January 10, 2020 can continue their activities, but will have to ensure compliance with the anti-money laundering policy. They need to apply for registration by June 2020.
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