Many crypto companies have not met the anti-money laundering standards – FCA

On May 31, according to foreign media reports, John Glen, the Minister of Economic Affairs at the Ministry of Finance of the United Kingdom, issued a statement stating that many cryptocurrency start-ups have failed to meet the anti-money laundering (AML) standards set by the British regulator.

According to him, since the FCA (Financial Conduct Authority) became the official anti-money laundering regulator for the UK crypto industry in January 2020, as of May 24, only 5 crypto companies have registered.

He added: “To date, more than 90% of the companies under evaluation have withdrawn their applications after FCA intervention. There are currently 167 UK cryptocurrency companies waiting to be registered, and 77 new cryptocurrency startups The company, its application is awaiting full evaluation.”

In addition, because a large number of companies did not adopt a strong anti-money laundering control framework and hire appropriate staff, the Financial Control Bureau was unable to process and register all applications before its previous deadline. Therefore, the FCA has established a “temporary registration system” that allows crypto companies to continue trading until July 9 before making a decision.

Bitcoin

This year, the FCA has been expanding its supervision of the encryption industry. In March of this year, the authorities announced plans to require crypto companies to submit annual financial crime reports. Previously, financial regulators prohibited British companies from providing crypto-derivative products, including futures and exchange-traded bills, to retail customers.