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Crypto Firms in the UK fail to meet Anti-Money Laundering Regulations

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According to online sources, the Financial Conduct Authority (FCA) has reportedly said that many cryptocurrency companies in the United Kingdom are not meeting the anti-money laundering regulations. As a result, the Financial Conduct Authority had to extend the date of the Temporary Registration Regime from 9 July 2021 to 31 March 2022. This provisional licensing program was aimed at preventing crypto firms from withdrawing their trade applications because of non-compliance.

In early September, the FCA had updated a list of cryptocurrency firms that had temporary registrations to conduct crypto asset activities. It was amply evident that the FCA was playing an active role in the monitoring of companies that potentially had a connection to money laundering schemes.

Global Crackdown on Crypto Firms

As the adoption of crypto has gained momentum, many global crypto companies are also facing regulatory pressure. Among the many who are part of the global crackdown is Binance corporation, which was banned by the Financial Conduct Authority in early June of 2021. Besides the UK, the financial regulator in South Africa, Financial Sector Conduct Authority (FSCA) has also warned its citizens to be cautious when dealing in Binance.

The financial regulator in Germany has also said that Binance was functioning in violation of the securities law in the European Union. This is because it offered tokens connected to stocks. In the United States too, Binance has been under investigation by many government agencies, including the IRS, Department of Justice, and Commodity Futures Trading Commission. According to a report by Chainanalysis, illicit bitcoins worth almost $756 million were traded and exchanged on the Binance.

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