Article Reading Time:
2 minutes.
According to the Financial Services AuthorityUK supervision (FCA), 85% crypto companies that applied for registration with the agency were rejected due to non-compliance with AML requirements.
The FCA recently published the results of itsresearch into digital asset companies. The regulator's report found that key personnel at most companies lack the appropriate knowledge, skills and experience to effectively manage risks and comply with minimum anti-money laundering and anti-terrorist financing standards.
The FCA also commented on the situation with the exchangeFTX. Given that FTX did not have an FCA license allowing the exchange to operate legally in the UK, this makes it difficult to accurately assess the negative impact of FTX's collapse on the British, the agency explained. At the same time, public documents in the FTX bankruptcy case indicate that 8% of the exchange’s international client base is in the UK. Based on this data, the regulator concluded that of the approximately one million FTX creditors, 80,000 are British investors.
Member of Parliament for West WorcestershireHarriett Baldwin added that the UK government is actively developing rules to regulate the cryptocurrency industry. However, the statistics provided by the FCA do not rid lawmakers of the impression that crypto assets represent the “Wild West.”
Under consideration by the UK ParliamentThere is a bill on financial services and markets, partly regulating cryptocurrencies. The bill would expand the FCA's oversight of digital assets, consistent with the agency's authority over traditional securities. Currently, these powers are limited to checking whether crypto companies have implemented anti-money laundering (AML) mechanisms. The bill is expected to come into force by spring 2023.
Let us recall that in August, the Crypto.com trading platform became one of the few companies that received FCA permission to provide cryptocurrency services to UK citizens.
Read this:
Singapore regulator updates cryptocurrency regulatory framework
The British regulator announced the absence of a license from the FTX exchange
British regulator NCA seized nearly $27 million worth of crypto assets
British regulator urged citizens not to trust the advice of cryptocurrency influencers
BaFin clarified the rules of work of foreign cryptocurrency companies in Germany
The regulator of China called for the cessation of cryptocurrency companies in the country