UK Treasury officials said that many cryptocurrency startups are not meeting anti-money laundering (AML) standards. Coinpost reported this on the 29th.
A question was submitted regarding delays in the review process of the Financial Behavior Monitoring Organization (FCA), and the response was revealed.
The Treasury Department’s economic secretary, John Glenn, told Conservative Congressman Philip Davis, who asked the question, how many cryptocurrency startups are failing to meet AML’s standards.
“A significant number of companies are failing to implement adequate and robust AML management frameworks and employ the right talent.”
[About the temporary registration system]
In December 2020, the FCA created a temporary registration system for cryptocurrency business in anti-money laundering (AML) and terrorist funding prevention (CTF).
However, although the registration deadline for cryptocurrency companies was initially set on January 10, 2021, there was a delay in the work due to the complexity of the application and its standards, and the deadline was extended to July 9.
Specifically, it is said that more than 90% of companies that have submitted applications through FCA intervention so far have withdrawn. In addition, as of May 24, there are only 5 cryptocurrency related companies registered, including 2 Gemini Exchange related companies.
Currently, 167 companies are waiting for AML/CTF registration, and 77 new startups are awaiting a full evaluation of the registration.
The Ministry of Finance released a consultation document on January 7th to seek broad opinions from the industry and stakeholders on the regulation of cryptocurrency and stablecoin.
It has already been accepted for comments on the document, and the government announced that it plans to outline the next steps in the future.
[Overseas business withdrawal]
In March, there was a case in which Bybit, a global cryptocurrency exchange based in Singapore, announced its decision to suspend and withdraw all services to UK residents in accordance with FCA regulations.
From January, FCA began implementing a ban on cryptocurrency derivatives trading because of the high risk to individual investors. After that, it was also reported that many cryptocurrency companies sent advisory e-mails and warned that companies that did not apply for license registration need to suspend business by January 10th.
Reports at the time pointed out that “existing cryptocurrency companies need to register with the FCA for the purpose of preventing money laundering and terrorist financing by January 9, 2021.” It can be considered a criminal offense from the 10th of January, and there is a risk of being subject to the FCA’s criminal and civil execution authority.”
(The English version of the story is a great way to learn how many times it is.)
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Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.