From today, the UK’s Financial Conduct Authority (FCA) will oversee companies doing business with crypto assets. The change is part of previous amendments to the nation’s anti-money laundering (AML) and counter-terrorist financing regulations.The news comes via a post from the Financial Conduct Authority (FCA) website. It states that companies engaging in specific activities relating to cryptocurrencies will need to comply with new requirements. Amongst others, the requirements include:
- Identification and assessment of the level of money laundering and terrorist financing risk created by their business.
- Implementing policies to mitigate these risks.
- Having a designated member of senior management responsible for compliance with the requirements.
- Performing due diligence on customers.
- Customers identified as high risk to be subject to “enhanced due diligence”.
5AMLDAs well as influencing the change in UK policy, 5AMLD is already shaking up the European cryptocurrency industry. As BeInCrypto reported at the end of last year, multiple companies have already stated that they will no longer be able to offer the same service they did before the regulatory change. The likes of BottlePay, Simplecoin, and Chopcoin are all amongst those impacted.
Deribit on the MoveThe Netherlands-based cryptocurrency derivatives exchange Deribit has also announced changes based on the new European regulations. Rather than compromise the service it delivers to customers, it has instead relocated to Panama. Industry analysts expect more companies to follow suit, too. Not all companies are planning to shut down or move their base of operations. As BeInCrypto reported early last year, popular peer-to-peer Bitcoin marketplace LocalBitcoins has already implemented new, tighter KYC checks in accordance with the new European regulations. It remains to be seen which companies will move, which will comply, and which will simply die as a result of 5AMLD and the specific national regulations it creates.
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