The FCA Cracks Down on Crypto Money Laundering
The Financial Conduct Authority (FCA) in the UK is taking strong measures to combat money laundering and other crimes in the cryptocurrency industry. The agency has introduced stricter requirements for companies operating in the cryptoasset space, including the implementation of the “Travel Rule” which mandates the sharing of detailed information about parties involved in crypto transactions.
Main Breakdowns:
- The FCA sets a compliance deadline of September 1, 2023, for the Travel Rule.
- Crypto firms must collect, verify, and share information about cryptoasset transfers.
- Firms are responsible for compliance even with third-party entities involved in transactions.
- Compliance extends to countries that are party to the Travel Rule.
- Firms must conduct risk assessments if necessary information is not provided.
The FCA’s Hope for Broader Adoption
The FCA’s announcement also includes provisions to promote transparency and fair dealing. While it does not explicitly ban transactions with parties from countries without the Travel Rule, firms are required to do their best to share and receive information and assess the counterparty’s legitimacy. The FCA emphasizes that it will review expectations as global adoption of the Travel Rule progresses.
Hot Take
With its tougher requirements and focus on the Travel Rule, the FCA aims to combat illicit activities and improve the reputation of the cryptocurrency industry. However, recent surveys indicate that UK crypto firms have a dim view of the FCA’s performance, raising questions about the effectiveness of these measures and the regulator’s image.
By
By
By
By
By
By