As time goes on, crypto firms are becoming more and more prominent across the world and in many ways, are approaching a similar footing with mainstream financial firms. Along with this increase in attention and prominence also means an increase in regulation. At a point in time, crypto firms were not very heavily regulated by various bodies but as they continue to grow, the need for regulation cannot be ignored. This is why there has been a sharp increase in regulation with regards to crypto firms, taxation, trading and so on across the globe.
It has been announced that Britain’s Financial Conduct Authority (FCA) will now supervise and oversee the anti-money laundering measures and counterterrorist financing of crypto-related firms within the country.
The official announcement was made on January 10, 2020, and states on the FCA will now supervise whether firms registered for crypto-related business in the United Kingdom are compliant with these regulations or not.
Besides this, the announcement also stated the new requirements for crypto-related firms in the United Kingdom and this includes the assessment of the potential risks of anti-money laundering issues as well as counter-terrorism financing and the implementation of policies and measures to prevent this from taking place as well as customer assessment.
“We will proactively supervise firms’ compliance with the new regulations, and will take swift action where firms fall short of desired standards and cause risks to market integrity,” the announcement said.
The FCA has, in the past, issued warnings for various crypto-related scams and back in November 2018, issued a statement claiming that cryptocurrency investments were risky for those who are uninformed about them and have had to get involved in a number of crypto-related issues over the years. It is no surprise that crypto firms are required to practice anti-money laundering and counter-terrorism financing measures as these have been common criticisms of the use of cryptocurrency over the years and it seems the matter is been addressed formally.