thecoinrepublic.com
The popularity of cryptocurrencies has skyrocketed during the past year and it is believed that such a pace will continue despite the ongoing global health crisis. In the U.K., however, there are crypto firms out there that are said to be unsuccessful in meeting regulations that zero in on biting back at money launderers. This is according to the nation’s Financial Conduct Authority.
Extension to discourage crypto firms
The research and data analyzing website PYMNTS recently published a report noting that the FCA made an extension on their so-called Temporary Registration Regime which is a provisional licensing program. Reports suggest that it will run from July 9, 2021, until March 31, 2022, as they aim to dissuade those cryptocurrency firms that might opt to withdraw their trade applications due to non-compliance.
In line with this, the government agency is said to have an updated roster of crypto-asset firms with temporary registration to continue crypto asset activities as this was done earlier this month. This proves to show that FCA is dead serious in keeping an eye on those firms with whom they believe to have connections to money laundering schemes.
It has to be pointed out, though, that it’s not just these U.K. crypto firms that are experiencing a similar debacle.
Binance’s headache
Take Binance for example. This crypto exchange firm from the Cayman Islands has been met with extreme criticism and regulatory pressure from authorities across the globe as they are somewhat on a mission to slow down the growth of the cryptocurrency market. In the U.K., Binance was hit with FCA’s banhammer back in June as this resulted in the crypto exchange giant’s operation in the country being put on a screeching halt.
This was done alongside an announcement where it stated that the firm was not given a green light to undertake regulated activities within the U.K. as the agency further explained that it is due to the imposition of requisites that are being set by themselves. They went on to state that no other entity within the Binance Group has any form of U.K. authorization, registration, or license to conduct regulated activity within the country.
South Africa too
South Africa also madedid a similar move. On September 3, the country’s Financial Sector Conduct Authority issued a press release warning the public against Binance Group. The statement added that the firm is not authorized to provide any financial advice or render intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act) in South Africa.
The adoption of cryptocurrencies will definitely continue. With that in mind, as government agencies around the globe get serious about money laundering regulations to be applied on these crypto-asset firms, so do these firms as they too are equally serious about AML compliance.