UK Financial Conduct Authority Register A Total Of 44 Crypto Firms Under Money Laundering Regulations

According to a recent update, the UK Financial Conduct Authority register process has seen a huge amount of crypto firms registering themselves under money laundering regulations. In total 44 crypto firms have currently registered themselves under money laundering regulations, as per the statement by the UK Financial Conduct Authority register.

“We must stay a step ahead of the criminals, whether it is to pre-empt the way they use new technology such as AI and deep fakes or whether it is to work together with the firms we regulate, to ensure their systems and controls keep a step ahead of those seeking to exploit them.”, said Steve Smart, the joint executive director of enforcement and market oversight. 

Steps Taken By FCA To Fight Financial Crime

• Authorization Process
  • Ensures firms meet high standards with appropriate systems and controls.
  • Aimed at preventing harm to the financial system
• Cryptocurrency Registration
  • 86% rejection rate for initial registrations due to non-compliance with anti-money laundering standards.
• Data Sharing Initiatives
  • Crucial for preventing harm by sharing data and intelligence across sectors.
  • Encourages active participation from firms and partners.

Intelligence-Led Approach & Data Analysis

Used to investigate regulatory breaches, insider dealing, and market abuse, this approach processes over 7 billion transaction reports and 500 million order book records daily.

Suggested Read: FBI Warning Against Unregistered Crypto Services

Regulatory Initiatives 

1. Name and Shame Proposals

• Under extensive consultation to enhance transparency and accountability.
• Reviewing industry feedback to refine proposals.

2. New Rules for Crypto Firms

• Require registration and approval of marketing materials by the FCA.
• Aim to strengthen oversight and compliance in the crypto sector.

Infact, the FCA has issued a warning to domestic and foreign exchanges operating in the UK that failure to comply with the new rules may result in criminal procedures, which include heavy fines and up to two years in jail.

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