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UK Government Issues New Guidance On Data Collection Related To Self Custody Crypto Wallets

Richard Marley
June 23, 2022
3 minutes read
186

The government of the United Kingdom is issuing new rules on the collection of data for the crypto businesses that gather identifying information for self-custody wallets

The UK’s finance ministry is making new guidelines on when the business of digital currencies can gather the data of the user. The collection of identifying information regarding the self-custody wallets is addressed in the guidelines.

After consulting extensively, the treasury of the United Kingdom stated that the businesses running crypto will now be required to gather self-custody wallet verification data only for the transactions, specifically suspected of illicit activities.

The statement of the UK officials mentioned: “Instead of requiring the collection of beneficiary and originator information for all unhosted wallet transfers, crypto-asset businesses will only be expected to collect this information for transactions identified as posing an elevated risk of illicit finance.”

The consultation consisted of several respondents who exercised the included supervisors based on the anti-money laundering and counter-terrorist financing groups in the United Kingdom. The members of the crypto assets sectors, civil industry, and society of academia also appeared in the official consultation.

According to the government, the legislation will add the laws for the businesses dealing in crypto that will determine the suspicious transaction. The new guidance will take charge in the coming future, in September upon the official approval from the complete parliament.

In the past, the United Kingdom made crypto firms gather data about the recipient of the investments and funds that are sent from all the self-custody wallets. As the result of increasing scams and digital frauds, the government is looking to tackle crypto-based transactions.

The government made its statements regarding the prevailing issue: “The government does not agree that unhosted wallet transactions should automatically be viewed as a higher risk; many persons who hold crypto assets for legitimate purposes use unhosted wallets due to their customizability and potential security advantages (e.g. cold wallet storage), and there is no good evidence that unhosted wallets present a disproportionate risk of being used in illicit finance.”.

The reports that came out earlier this year, also indicated that the UK government would release more regulations in terms of the crypto exchanges after completing the consultations with the associated firms and trading groups.

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Danish Gambling Operator Reports Tipwin to the Police for AML Failings
Then danish gambling operator Spillemyndigheden has reported Tipwin to the police for violating the Danish Money Laundering act

According to the sources, Spillemyndigheden, the government office based in Odense, Denmark, has reported to the police that the business has failed to create risk assessments of retail bets with a lack of written policies on its retail offerings.

It is also worth mentioning that the operator also lacks complete business procedures and controls for the offerings based on land or in regards to money laundering until 25 May 2022.

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In addition, Spillemyndigheden issued a 3 months deadline to Tipwin to sort out the situation.

Suggested Read: Danish Gaming Regulator Sanctions Unibet Over AML Violations

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While Australia’s vulnerability to money laundering and organized crime is obvious, firms that incorporate a robust AML Screening solution can steer clear of both money laundering and regulatory penalties. AML/CFT regulations oblige businesses to identify the ultimate beneficial owners and individuals who perform transactions for corporate customers. The FATF advises businesses to verify the identities of their customers through document verification checks and analyse the risk associated with them.

Shufti Pro’s AI-backed identity verification and Anti-Money Laundering (AML) screening solutions allow financial firms to adopt a risk-based approach. The globally acclaimed company offers services in 230+ countries and territories that ultimately overcomes the data transparency issues identified by FATF. In less than a second, financial organizations can get 98.67% accurate identity verification results.

To learn more about Shufti Pro’s AML Screening solution, get in touch with experts.

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UK Government Issues New Guidance On Data Collection Related To Self Custody Crypto Wallets

Crown and Star Casinos – A Stain on Australia’s Reputation

Australia’s Anti-Money Laundering Regime

How Casinos and Businesses Can Secure their Operations

What Shufti Pro Offers

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