The UK’s
financial watchdog continues to maintain strict supervision of the emerging crypto
industry in the country. Since January 10, 2020, 291 crypto asset businesses in
the country have applied for registration under the 5th Anti-Money Laundering
Directive (5MLD). However, the Financial Conduct Authority (FCA) has approved
only 38 firms or 13% of received applications.
The FCA disclosed these on Friday in its
response to a Freedom of Information request. Despite
approving only 38 applications, the regulator said it does not decline firms.
It, however, further pointed out that it has so far refused five applications and rejected 22.
5MLD is a
set of rules introduced in January 2020 to bolster the European
country’s anti-money
and counter-terrorist financing regime. The regulation is the revised version
of the 4th Anti-Money Laundering Directive
(4MLD) created in 2015.
Additionally, the FCA clarified
that it refused certain applications because the applicants did not meet the
conditions for registration under the Money Laundering, Terrorist Financing and
Transfer of Funds Regulations 2017 (MLRs). MLRs are a set of rules in the UK
that outline the steps that business organizations must take to prevent money
laundering and terrorist financing.
“Firms are
required to provide the minimum information set out under regulation 57 of the
MLRs; any firm
that has not provided the required information will have their application
rejected,” FCA noted.
Moreover, the
financial markets supervisor noted that 155 crypto businesses withdrew their registration applications during the period. The
applications were cancelled for a number of reasons, including
not meeting the benchmark for registration as a digital asset exchange and
crypto custody wallet provider.
The UK’s
financial watchdog continues to maintain strict supervision of the emerging crypto
industry in the country. Since January 10, 2020, 291 crypto asset businesses in
the country have applied for registration under the 5th Anti-Money Laundering
Directive (5MLD). However, the Financial Conduct Authority (FCA) has approved
only 38 firms or 13% of received applications.
The FCA disclosed these on Friday in its
response to a Freedom of Information request. Despite
approving only 38 applications, the regulator said it does not…
