Financial Crime Reporting Rules Extended to Crypto-Asset Firms – Forbes Advisor UK


The UK’s financial regulator, the Financial Conduct Authority (FCA), has announced a reshuffle of its anti-money laundering activities that will see companies trading in cryptoassets required to file annual reports on their trading activities. negotiation.

The FCA will use this information to determine the potential risk of financial crime, which will allow it to target its surveillance resources where it identifies the greatest risk.

Exchange tokens of cryptoassets such as Bitcoin, Litecoin, Ether and other virtual currencies are only regulated in the UK for money laundering purposes. This means you have little to no protection if something goes wrong, and as the FCA points out, you have to be prepared to lose whatever money you invest.

Related: What Is Cryptocurrency

The FCA maintains a register of crypto-asset companies that must comply with money laundering rules. These companies will have to file a financial crime report no later than March 30, 2022 and annually thereafter.

This obligation already covers financial institutions, including banks and real estate companies. The FCA says the expansion of the reporting requirement will bring the number of companies involved from 2,500 to around 7,000.

The inclusion in the financial crime rules of companies such as cryptoasset exchange providers and custodian wallet providers is an indication of both the increasing popularity of cryptoassets themselves and the risk of their use by criminals seeking to move or use money illegally, such as to finance terrorism.

If, as seems likely, cryptoassets continue to thrive in the global financial market, the FCA may come under more pressure to provide a regulatory framework that protects UK consumers, but until then the buyer is wary.

Read more about cryptocurrencies in Mark’s article.

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