UK Financial Conduct Authority officially oversees anti-money laundering and anti-terrorist financing activities of crypto companies

According to Cointelegraph, according to an official announcement issued on January 10, the UK's Financial Conduct Authority (FCA) will conduct anti-money laundering and anti-terrorist financing monitoring of companies engaged in cryptocurrency-related activities to ensure that crypto-related assets The enterprise complies with relevant regulations and requirements.

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What crypto businesses need to meet

In the announcement, the UK Financial Conduct Authority listed new requirements that companies involved in cryptocurrency related businesses need to comply with, including identifying / assessing the degree of anti-money laundering and anti-terrorist financing risks caused by the company's business, and developing policies and measures Eliminate these risks, conduct customer due diligence, and more.

The announcement reads:

We will actively monitor compliance with new regulations. If a company fails to meet expected standards or poses risks to market integrity, we will act quickly.

The dramatic evolution of cryptocurrency in the UK

As early as July 2018, the UK's Financial Conduct Authority warned that cryptocurrencies pose significant risks because consumers are often misled. It recommends that products such as derivatives and exchange-traded notes (ETNs) that target crypto assets are "not suitable" for small investors.

Although the regulator has been considering restricting crypto derivative transactions for retail investors, last summer it concluded that mainstream cryptocurrencies were "exchange tokens" and "usually decentralized and used mainly for exchange." At the time, the UK Financial Conduct Authority emphasized that such digital currencies were outside its regulatory scope and were not within its regulatory authority.

In late November, Piers Ridyard, chief executive officer of Radix's decentralized ledger, said that, in fact, the British authorities were relatively open to crypto innovation, noting:

Over the years, the UK's Financial Conduct Authority's view of cryptocurrencies has evolved and evolved to allow trials of the technology in a sandbox environment, as long as a regulatory permit is obtained. The UK generally considers itself a leader in financial technology, so the Financial Conduct Authority will not be a barrier to innovation.