Crypto companies News: Failure to meet Anti-Money Laundering standards set by UK regulators has reportedly left many crypto companies out of business. The strict Anti-Money Laundering laws in the UK seem to pose a major operational hurdle for crypto firms in the country.
According to the UK Financial Conduct Authority (FCA), some crypto businesses in the country may be preparing for the exit. In a post published Thursday, the regulator explained:
“A significant number of businesses do not meet the required standards under Money Laundering Regulations. This has resulted in an unprecedented number of businesses withdrawing their applications.”
Cryptocurrency companies are out of business?
According to a report by The Guardian, 51 crypto firms have so far failed to meet the FCA’s AML standards and may therefore have to cease operations in the country. It seems inevitable that these crypto firms should withdraw their license applications, shutting down all crypto-related services, or risk fines and legal action by the FCA.
Such businesses can only resume their operations after meeting the FCA’s AML protocols and then enter the regulators’ list of registered digital currency firms. On the other hand, as previously reported by Cointelegraph, the FCA extended the temporary registration regime for crypto businesses from July 2021 to March 2022. This nine-month extension will reportedly give the FCA ample time to clear its backlog of pending license applications.
The FCA reportedly has 90 registration requests pending approval, with only 5 crypto businesses duly registered in the UK. is coming. Companies that do not meet the FCA’s AML requirements at the end of the registration period will also have to return all customer investments.
In January 2020, the FCA became, in a sense, the AML police for the UK crypto market, marking the beginning of mandatory business registration for digital currency firms in the country.