The inability to satisfy Anti-Money Laundering standards set by
regulators in the United Kingdom is reportedly forcing many crypto
companies out of business.
Strict Anti-Money Laundering laws in the United Kingdom appear to be
constituting a major operational hurdle for crypto firms in the country.
According
to the U.K. Financial Conduct Authority (FCA), several crypto
businesses in the country might be preparing for an exit.
In a release issued on Thursday, the regulatory agency revealed:
“A
significantly high number of businesses are not meeting the required
standards under the Money Laundering Regulations. This has resulted in
an unprecedented number of businesses withdrawing their applications.”
According to a report
by The Guardian, 51 companies have so far failed to meet the FCA’s AML
standards and may be forced to cease operations in the country.
By
withdrawing their license applications, these crypto firms must stop
all crypto-related services or risk fines and legal action by the FCA.
Such businesses can only resume operations after having satisfied the
FCA’s AML protocols following which they will be entered into the
watchdog’s list of registered cryptocurrency firms.
As previously reported by Cointelegraph, the FCA extended its temporary registration regime for crypto businesses from July 2021
to March 2022. This nine-month extension is reportedly to give the FCA
ample time to clear the backlog of pending licensing applications.
The
FCA reportedly has 90 pending registration requests with only five duly
registered crypto businesses in the U.K. Meanwhile, some of the 51
companies that have withdrawn their licensing applications may not be
covered by the FCA’s AML rules meaning their actions might not result in
a compulsory shutdown.
Companies that fail to meet the FCA’s AML
requirements by the end of the registration window will also be forced
to refund all customer deposits.
Back in January 2020, the FCA became the AML police for the U.K.’s crypto market marking the start of compulsory business registration for cryptocurrency firms in the country.
sorce link : https://cointelegraph.com/news/51-crypto-firms-withdraw-licensing-applications-in-the-uk
