Amid tightening the noose for digital currency, Britain’s financial regulator has now revealed a shocking fact that most of the cryptocurrency firms are not meeting Britain`s anti-money laundering and counter-terrorism financing rules and they are not even eligible to meet required standards.
The cryptocurrency world has already been suffering through its 12-year life by lax standards on money laundering and other illicit activities.
Even if the standards seem to have shown little improvement, the global regulators and policymakers have in recent months expressed concerns over the illicit use of crypto.
Since January, cryptocurrency-related firms have had to register with Britain’s Financial Conduct Authority (FCA) – which oversees their compliance with UK laws designed to prevent money laundering and terrorist financing – before doing business.
“The FCA will only register firms where it is confident that processes are in place to identify and prevent this activity,” it said.
Despite repeated warnings, only five firms are registered with https://register.fca.org.uk/s/search?predefined=CA the FCA. As of May 12, another 90 https://register.fca.org.uk/servlet/servlet.FileDownload?file=0154G0000062BtF have temporary registration, the regulator further allowed them to continue trading while their applications are assessed. The FCA says this status does not deem them “fit and proper”.
The watchdog plans to extend the end date of its temporary registrations regime from July 9 to the end of March 2022, it said.
The FCA further said that 51 firms have withdrawn their applications for registration and can no longer trade. Firms that do not do so are subject to FCA enforcement, it added.