UK minister: most cryptocurrency firms don’t meet AML standards

According to John Glenn, a British MP and UK finance minister, John Glenn said that few cryptocurrency companies are complying with AML regulations.

According to the official, local cryptocurrency companies are trying to comply with the new anti-money laundering rules set by the UK Financial Conduct Authority (FCA). However, they are experiencing serious difficulties when registering. Glen said the FCA only licensed five digital device companies on May 24 after the agency obtained the license in January 2020. When the FCA began monitoring cryptocurrency companies, it rejected more than 90 percent of applications for registration.

Specifically, the regulator rejected 167 companies’ applications. Now, 77 more companies are awaiting the FCA’s decision. The official explained that the department was unable to process and register all applications by the deadline because most cryptocurrency companies had not taken adequate steps to comply with AML rules and had not hired the necessary staff.

Therefore, the FCA has again set up a temporary registration system that will allow cryptocurrency companies that apply to the FCA to continue their operations until July 9. Glen added that the U.K. Treasury is working closely with the FCA and industry organizations on cryptocurrency issues. The government wants to create a regulatory system for the industry that protects users from potential risks without hindering innovation.

UK minister: most cryptocurrency firms don't meet AML standards
UK minister: most cryptocurrency firms don't meet AML standards

This year, the FCA has increased its oversight of the digital money industry. In March, the agency instructed cryptocurrency companies, including banks, to submit annual reports on potential financial crime risks associated with crypto stocks. Earlier, the regulator banned British companies from selling cryptocurrency derivatives to retail investors. The ban came into force in January 2021.

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Roman Mikhailov
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