The UK’s chief financial regulator wants to force all crypto transactions and wallet providers operating in the country to report fraud.
New plan for strict control
A policy was proposed yesterday Published. In it, he said the UK Financial Conduct Commission (FCA) plans to increase the debt of crypto companies. It should also provide companies with additional information on money laundering practices. FCA 2016 required annual crime reports from financial institutions.
In addition, under the new scheme, all crypto exchanges and custodial wallet providers will be required to submit a report on the risk of financial crime to the FCA. This does not matter their total annual income.
For now, this proposal is only a proposal. The FCA plans to collect feedback by November 23 and release a policy statement for the first quarter of 2021. There will be new rules.
Under the proposed rules, crypto companies will be required to provide information from January 10, 2022 onwards, from their next account reference date. This date is slightly later than other companies. Crypto companies have until January 10, 2021 to register with the FCA.
Companies are often registered at tax havens such as the Cayman Islands. However, they are mostly active around the world. The FCA defines “property” where the company conducts its business or has a physical presence through a legal entity.
The FCA said there may be additional reporting obligations we need from crypto asset companies in the future.
The reason for the new plan
The FCA wants to collect data from these companies, whose sources focus on companies that engage in high-risk activities.
The additional data requested will be the latest in a series of obligations imposed on cryptocurrencies by regulators. The European Union introduced the Fifth Anti-Money Laundering Order (AMLD5) in January, calling on cryptocurrencies to take more action to curb money laundering.
The Financial Action Task Force is an international financial crime monitoring organization. They recommend that crypto companies share information about their customers when processing transactions with other crypto companies. The recommendation was to start in June. However, due to the epidemic the FATF has made some concessions to its members.
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