FCA Complies With Crypto Firms to AML and Counter-Terrorism Legislation

• FDC seeks industry inputs for setting the right crypto assets future regime.
• Crypto promotions are to be prioritized over any high-risk investments.

At the City Week 2023 event on April 25, 2023, the Executive Director of Markets, and Executive Director of International, Sarah Pritchard delivered a speech on the regulation of Digital Assets in the UK.

The United Kingdom (UK) is one of the top-ranking countries for crypto adoption. The rise in crypto over recent times gives chance to risks among the investors and users getting piled up. In accordance with the Fidelity Institutional Investory Digital Asset Study of 2022, cryptos are held by 67% of European investors and 42% of United States investors.  

The cryptos have turned into a boon among investors creating huge opportunities. Whereas, as per Chainanalysis reports of crypto crime records the previous year was the ATH (All Time High), receiving $20.6B in illicit addresses. Currently, analysts come up with a 69% increase in sending cryptos to illicit addresses, this year. However, the Financial Conduct Authority (FCA) is in action to prevent crypto crimes without harming users.

FCA Is All Set To Progress!

On the other hand, FCA limits crypto firms’ operations to comply with the counter-terrorism legislation and anti-money laundering (AML). It also requires UK-based crypto asset exchanges and custodians and thereby registered 40+ crypto firms. Alongside this, it is expected to promote cryptos over other high-risk investments.

The members of FCA tend to lead robust actions over crypto assets promotion to UK users and also provide campaigns. The campaigns namely ‘ScamSmart’ and ‘InvestSmart’ are provided through an online portal. Due to the global collaboration, they seek asset class market integrity to surge with respect to future regimes, to be decided by the Treasury. 

Matthew Long, the Directory of Payments and Digital Assets in FCA manages 130 group members of international regulators. They predominantly focus on developing regulatory standards for market integrity and protecting the investors. 

Nevertheless, FCA reached out for the roundtable discussion for building the innovative Crypto Policy Sprints to set the proper future regulatory regime for crypto assets.

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