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FCA says cryptocurrency firms are not meeting anti-money laundering rules

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In a recent update from the Financial Conduct Authority, the regulator has stated that a significantly high number of businesses are not meeting anti-money laundering and financing standards. As a result of this, an unprecedented number of firms have withdrawn their applications to register with the FCA.

The FCA has made the decision to extend the date of the Temporary Registrations Regime (TRR) from 9 July 2021 to 31 March 2022. The TRR, which was established last year, was set up to allow existing cryptoasset firms, who had applied to be registered with the FCA, to continue trading. The extending of the TRR date will allow these crypto firms to carry on doing business while the FCA continues with their assessments.

The cryptocurrency sector has been plagued through its 12-year life by lax standards on money laundering and other illicit activities. Even though its widely believed that standards have improved, policymakers and regulators around the globe have voiced concerns over the illicit use of crypto over the last few months.

Anti-money laundering and counter terrorist financing legislation are aimed at protecting against enabling the transfer and disguise of funds from criminal activity, or funding of terrorist groups. Since January, cryptocurrency-related firms have had to comply with UK laws on anti-money laundering and counter-terrorist financing.

In a recent statement, the FCA said it “will only register firms where it is confident that processes are in place to identify and prevent this activity.”

How we can help

At Neopay we have a 100% success rate when it comes to cryptocurrency registration, including with projects that are politically sensitive. If you are a cryptocurrency firm and would like to know more about how we can support your business with authorisation and licencing, contact our team of experts here.

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