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The UK Regulator Demands Money Laundering Reports from Crypto-Related Companies

25 August 2020, 14:17
Votes: 1

As it has been revealed in recent news on cryptocurrency, the UK financial regulator has introduced a new proposal, which will make cryptocurrency-based companies inform it about money laundering risks.

The UK Regulator Demands Money Laundering Reports from Crypto-Related Companies

If the law comes into force after its consideration, crypto wallets and exchange systems will be obliged to provide information about potential cases of money laundering. It isn’t the first time when the UK’s Financial Conduct Authority (FCA) requires such data from financial establishments. It has started to do this in 2016.

What will the proposal change?

According to this proposal, all crypto-related businesses will need to make reports about financial crimes. This law will be applicable to every company, even to those that have a low revenue. The proposal hasn’t been approved yet. It has been submitted for comments and will be under consideration until the end of November. Law enforcement is expected to take place at the beginning of the next year.

That is why companies connected with the crypto market should be getting ready to gather and provide such information as, for example, the number of clients who seem to be involved in fraudulent actions. Firms won’t be able to avoid the law by stating that they are registered on the Cayman Islands (as they usually do) because the FCA has specified the meaning of the word “operate”. It means the provision of services as a legal entity in the territory of a country.

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