The FCA has planned on new regulations that concentrate on identifying and evaluating of risks of terrorist financing and laundering of funds.
FCA Assuming New Roles for Supervision
The UK financial watchdog, Financial Conduct Authority (FCA), is prepared to assume a bigger role in regards to cryptocurrency; they have planned on taking new roles of supervision. The FCA has constantly been the highlight of various regulatory circumstances, with their jurisdiction distributing over issues on operations in the past year through several warnings and sanctions.
The most recent move will show that the FCA is going to become the supervisor of both AML and CTF of all activities, regarding cryptocurrency assets in the UK. Any business and all firms that are interacting under the cryptocurrency assets in the UK will be integrated into the new requirements, along with abiding by the FCA’s jurisdiction.
Also, the financial UK watchdog will request all cryptocurrency asset firms to abide by various recent precautionary policies that are focusing on hindering abuse. The supervisory move is not nearly as groundbreaking, considering the predisposition for abuse in the cryptocurrency industry. Until today, the industry has been seen as vulnerable.
What are the New Requirements for Cryptocurrency Firms?
The new regulations of the FCA concentrate on identifying and evaluating of the financial risks revolving around terrorist financing and laundering money. These two aspects are weak points for all cryptocurrency activities, considering its unpredictable nature that is relative to its traditional methods of finance.
The FCA will also consider, when it is relevant, to appoint an individual that is part of the member of the board or senior management to taking control of compliance with the MLRs. This task will include the handlings of customer due diligence when introducing a business relationship or for occasional transactions. There will be focus on customers who may be suspicious of a higher risk of laundering money and\or financing terrorists.
There will be more information that is related to those changes that can be found on the website of the FCA, with the watchdog attempting to make an immediate decision on the new compliance. With the watchdog’s website, there are already businesses that are conducting cryptocurrency activity who may continue their business as usual, but they will need to guarantee their compliance with the MLR immediately.
To guarantee that this deadline is met, financial business will have to submit an application by registering through Connect by June 2020.