UK crypto firms fail to meet new AML guidelines, FCA extends deadline

The UK's main financial regulator has revealed that most of the crypto companies operating in the country do not comply with the latest anti-money laundering regulations issued by the government. The new regulatory policy of the Financial Conduct Authority (FCA) will only provide business licenses to crypto companies that comply with the latest AML and terrorism financing guidelines, effective January this year. “FCA will only register companies it has made sure processes are in place to identify and prevent this activity”, Majority of Crypto companies did not comply with the new AML compliance and as a result a significant number of these companies were withdrawn. their applications. The deadline for filing with the FCA was set to July 9, but given the growing number of crypto companies withdrawing their applications, the regulator has extended the registration deadline to March 22. Governments around the world impose stricter regulations The majority of governments worldwide want to bring crypto companies under new AML guidelines and terrorism financing compliance, claiming that the use of digital assets for illegal activities is increasing. There is little evidence to support the claims, and the latest evidence suggests that less than 1% of crypto assets are used to engage in illegal activities. Outside the UK, even the Biden administration has pointed to possible stricter regulations around the cryptocurrency market. Gary Gensler, the new head of the US Securities and Exchange Commission (SEC), has emphasized the same in many of his statements and public speaking engagements since taking office a few months ago. Regulation should not be seen as a regressive move, but tight government policies often lead successful companies to relocate, as seen in the post-2017 bull market when many established crypto firms were forced to leave New York due to licensee restrictions.

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