Numerous digital currency firms operate in breach of Britain’s anti-money laundering and counter-terrorism financing rules, the country’s financial watch dog said on Thursday, showing how some of the firms are battling to satisfy required guidelines.
The digital currency world has been tormented through its 12-year life by loose norms on money laundering and other illegal exercises.
While principles are broadly seen to have improved, global regulators and policymakers have lately communicated worries over the illegal utilization of crypto.
Since January, digital currency related firms have had to enlist with Britain’s Financial Conduct Authority (FCA) – which manages their compliance with UK laws intended to forestall money laundering and terrorism financing – prior to working together.
“The FCA will just enroll firms where it is certain that cycles are set up to recognize and forestall this action,” it said.
Just five firms are enrolled with the FCA. As of May 12, another 90 have temporary enrollment, permitting them to keep trading while their applications are evaluated. The FCA says this status doesn’t consider them “fit and appropriate”.
The watch dog will extend the closing date of its temporary enrollments system from July 9 to the end of March 2022, it said.
The FCA said 51 firms have withdrawn their applications for enlistment and can presently not trade. Firms that don’t do so are subject to FCA enforcement, it added.
