Cryptocurrency News

Cryptocurrency companies do not meet AML standards, UK minister says

According to a senior official, cryptocurrency businesses in the United Kingdom are struggling to meet anti-money laundering standards set by the Financial Conduct Authority.

John Glenn, Member of the Parliament of Britain and the Economic Secretary of the Treasury, Told There were major difficulties in the process of registering crypto firms under the FCA’s AML rules in official comments on Friday.

According to the official, only five crypto businesses have received registration from the FCA until May 24 after authorization Became official AML supervisor Of the crypto industry in the UK in January 2020.

“More than 90% of the firms have withdrawn their applications after FCA intervention. There are 167 crypto asset businesses with excellent applications, “Glenn said. He added that applications from 77 new crypto firms are pending a full evaluation.

The Secretary noted that FCA was also not able to process and register all applications until its earlier deadline as a large number of firms failed to adopt the AML control framework as well as hired appropriate staff. For example, FCA established a “temporary registration system” Crypto companies allowed to continue trading Decision pending until July 9, 2021.

Glenn also stated that Her Majesty’s Treasury has been in regular contact with the FCA as well as industry associations, firms and consumer organizations regarding concerns over the extent of financial services related to crypto. He said that HM Treasury Published Consultation on the comprehensive regulatory framework of crypto with focus on stable stocks in January this year:

“Any future regulatory regime for government-determined cryptocurrency in light of this consultation will be aimed at balancing potential risk to consumers with the ambition to encourage competition and innovation in the industry.”

The FCA is expanding its regulatory oversight of the crypto industry this year. In March, the authority announced its plan to require crypto firms Submit annual financial crime report. First, the financial watchdog UK firms banned from introducing crypto derivatives Products including futures and exchange-traded notes for retail customers.