A senior official said that the UK’s cryptocurrency business has been struggling to meet the anti-money laundering standards set by the Financial Conduct Authority.
John Glen, Member of Parliament and Minister of Economy at the Ministry of Finance, United Kingdom Point out In the official comment on Friday, the main difficulty in registering a cryptocurrency company under the FCA’s AML regulations.
The official stated that as of May 24, only five cryptocurrency companies have obtained registration from the FCA after authorization Become an official anti-money laundering supervisor The development trend of the UK cryptocurrency industry in January 2020.
“So far, more than 90% of the companies evaluated have withdrawn their applications after FCA intervention. There are 167 crypto asset businesses with outstanding applications.” Glen pointed out. He added that there are 77 new cryptocurrency companies pending applications for full evaluation.
The secretary mentioned that the FCA has not been able to process and register all applications before the previous deadline because many companies have failed to adopt a strong AML control framework and hire suitable employees. Therefore, FCA has established a “temporary registration system” Allow crypto companies to continue trading Waiting for a decision until July 9, 2021.
Glenn also said that the Ministry of Finance under je has maintained regular contact with the FCA and industry associations, companies and consumer organizations, and paid attention to the scope of financial services related to encryption.He pointed out that the UK Treasury Published In January of this year, a consultation was conducted on a broader regulatory framework for cryptocurrencies, with a focus on stablecoins:
“The government’s future regulation of encrypted assets based on this consultation meeting aims to balance potential risks to consumers with the ambition of stimulating industry competition and innovation.”
FCA has been expanding its supervision of the encryption industry this year. In March, the Authority announced a plan to require cryptocurrency companies to take the following actions: Submit annual financial crime report.Previously, financial regulators Ban UK companies from providing cryptocurrency derivatives Products offered to retail customers, including futures and exchange-traded bills.