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111 unregistered crypto-asset firms are operating from the UK. FCA warns consumers, banks, and payment service companies against them.
Since January 10, all cryptocurrency firms based in the UK have had to stay compliant with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) laws, as well as to register with the FCA in order to operate legally. However, many firms are failing to do so.
The UK’s financial watchdog revealed on Tuesday that more than 100 unregistered crypto-asset firms are posing a risk to the financial system of the country. The regulatory body also warned consumers, banks, and payment service companies by advising them not to deal with such unregistered firms.
The FCA’s (Financial Conduct Authority) head of enforcement and market oversight, Mark Steward, commented on the “City & Financial’s City Week” event on June 22 that unregistered firms are high-risk and volatile entities, and 111 of such companies are currently operating from Britain without being registered.
Adding to this, he stated:
“We have a number of firms that are clearly doing business in the UK without being registered with us, and they are dealing with someone: banks, payment services firm, consumers. This is a very real risk, so we are worried about that.”
A compiled list of unregistered crypto businesses has been published by the FCA, allowing investors to double-check if the firm they wish to deal with is non-compliant.
The list can be viewed here.
The operational hurdles that have arisen from UK’s stringent anti-money laundering laws might be why crypto-asset firms are yet unregistered. As previously reported, 51 crypto firms withdrew their registration applications to the FCA.
The UK’s government is working tirelessly to curb money laundering, terrorism financing, and similar criminal acts that are facilitated by cryptocurrencies.
Suggested Read: UK’s Financial Watchdog Goes Real-time to Catch Online Criminals