The chief financial regulatory body of the United Kingdom, FCA, revealed that the majority of the crypto companies operating in the country have failed to comply with the latest set of anti-money laundering regulations issued by the government. The new regulatory policy set by the Financial Conduct Authority would only offer operating licenses to those crypto firms that comply with the latest AML guidelines and terror financing guidelines that came into effect from January this year.
FCA extends the deadline.
The majority of the crypto firms failed to adhere to new AML compliance, and as a result, a significant portion of these companies have withdrawn their application. The last date for filing with the FCA was set for July 9. However, looking at the growing number of crypto companies withdrawing their filings, the financial regulatory body has extended the registration deadline to March 22. Financial regulators around the globe want to bring crypto companies under new AML guidelines and terror financing compliance, claiming the use of cryptocurrencies has increased for illicit activities.
Crypto regulations begin to tighten up across countries.
There is little evidence to back the claims, and most recent evidence indicates that less than 1% of crypto assets have been used to carry out illegal activities. Apart from the UK, even the Joe Biden administration has indicated possible strict regulations around the cryptocurrency market. The US SEC head Gary Gensler has stressed the same in the majority of his testimonials and public addresses since taking office a few months back. Crypto regulations in many countries have been getting stricter following bitcoin’s highly volatile this year.