The Financial Conduct Authority (FCA) has said that many cryptocurrency firms are not meeting Britain's anti-money laundering and counter-terrorism financing rules.
Since January 2021, cryptocurrency-related firms have had to register with the Financial Conduct Authority (FCA), which oversees their compliance with UK laws designed to prevent money laundering and terrorist financing, before doing business.
The country's financial watchdog has revealed that some parts of the emerging sector are struggling to meet required standards. Only five firms are registered with the FCA. As of May 12, another 90 have temporary registration, allowing them to continue trading while their applications are assessed. The FCA says this status does not deem them ‘fit and proper, according to Reuters.
The watchdog will extend the end date of its temporary registrations’ regime from 9 July 2021 to the end of March 2022, it said. The FCA said 51 firms have withdrawn their applications for registration and can no longer trade. Firms that do not do so are subject to FCA enforcement, it added.
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