Crypto Firms are not Meeting AML Standards: U.K. Treasury Official

Jafrin  |  May 29, 2021

John Glen, a member of the U.K. Parliament and the economic secretary to the Treasury, has issued a statement claiming that a number of crypto firms have failed to meet the anti-money laundering (AML) standards set by the Financial Conduct Authority (FCA).

Only 5 Crypto Firms Receives Registration from FCA

On May 24, John Glen, economic secretary to the Treasury, in a written reply to Philip Davies, a Conservative member of Parliament (MP) for Shipley, West Yorkshire has stated that a significant number of U.K firms have been struggling to meet Anti-Money Laundering standards (AML) set by the Financial Conduct Authority (FCA).

"The U.K. is committed to having a robust AML regime for crypto assets which will help to bolster confidence in the U.K. as a safe and reputable place to start and grow a crypto asset business," he adds.

The official says that only five crypto firms had been registered as of May 24 after the FCA became the official AML supervisor in the U.K. in January 2020, namely Ziglu, Archax, Digivault, and two Gemini entities.

According to Glen, there are currently 167 U.K. crypto firms awaiting registration with 77 new crypto firms are pending assessment.

“Of the firms assessed to date over 90% have withdrawn their application following FCA intervention,” he added.

FCA Forms “Temporary Registration Regime”

Glen’s statement comes as hundreds of crypto firms are in confusion over whether they will be able to continue to operate beyond July 9, the revised deadline by which they must either be included under FCA’s registration or cease trading.

Earlier this week, Davies mentioned that the FCA was also not able to process and register all applications by its previous deadline due to a significant number of firms failing to adopt robust AML standards.

Hence, the FCA established a “Temporary Registration Regime” allowing crypto companies to continue trading until July 9 pending a decision.

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