UK Regulatory Authorities Warns Crypto Firms to Comply with Latest AML Obligations
The UK regulatory department, Financial Conduct Authority (FCA), has warned cryptocurrency platforms to comply with their new laws and follow registration requirements.
The FCA warned all digital assets businesses that are not upholding their new measures for registration; they claimed that many crypto firms still need to provide Complete information for business verification and engage with regulatory departments. They addressed that these platforms put them at risk of heavy fines and financial crimes by not complying with regulations. They also pointed out the lack of regulation in the crypto space could lead to widespread fraud and financial instability. In order to guarantee the safety of their consumers and the reliability of the entire market, the FCA emphasised that cryptocurrency firms must prioritise regulation compliance.
The FCA introduced these new regulations in 2020 as a part of the UK’s implementation of the 5th Anti-Money Laundering Directives (5AMLD). These obligations are designed to prevent crypto companies from money laundering, terrorist financing, and various illegal activities. It is the FCA’s duty to monitor the compliance of the crypto firms with rigorous regulations, including customer due diligence, business verification, risk assessment, and reporting suspicious activities.
The FCA’s warning comes despite rising global and UK interest in cryptocurrency demand. This demanding interest in digital assets also increases fraud and illicit activities through crypto platforms that’s why the FCA repeatedly cautioned the virtual assets dealing companies. Currently, FCA is not the only regulatory authority cracking down on crypto transactions medians, Financial Action Task Force (FATF), which establishes international guidelines for combating money laundering and terrorist financing, released updated guidance for crypto asset service providers, urging them to put in place adequate measures to identify and prevent illegal activity.
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