Category: Digital Currencies

Six Steps Exchanges Can Take to Comply With Cryptocurrency Sanctions

Digital Currencies, Sanctions
With the Russian invasion of Ukraine ongoing and extensive sanctions being levied accordingly, cryptocurrency-specific designations may be close behind. Below, we outline six steps exchanges can take to strengthen compliance. 1) Collect Know Your Customer (KYC) information and screen it against sanctions listsAny cryptocurrency business should explore collecting KYC information from new users upon sign-up, recording information such as customer names, addresses, phone numbers, emails, and related documentation. As part of the KYC process, cryptocurrency businesses should screen this information against sanctions lists to refrain from doing business with any designated individuals, entities, or with sanctioned countries. Because each country…

Why the U.K. Needs to Accelerate its AML/CTF Efforts on Crypto Assets

Digital Currencies, Money Laundering, Terrorism
As money-laundering risks rise with the increased adoption of cryptocurrencies, the UK needs to accelerate its response to maintain its future as a centre for financial innovation. It’s been two years since the UK rolled out its anti-money laundering and countering the financing of terrorism (AML/CFT) regime for cryptoassets. And there’s been one clear lesson in that time: getting it right isn’t easy. As the Treasury Select Committee report on Economic Crime (TSC Report) launched on 2 February noted, ‘registration of crypto-asset firms for money laundering has been slow’, leading the Committee to urge quicker progress. However, UK progress should…

HMRC Seizes NFT for First Time in £1.4m Fraud Case

Digital Currencies, Fraud
The UK tax authority has seized three Non-Fungible Tokens (NFT) as part of a probe into a suspected VAT fraud involving 250 alleged fake companies. HM Revenue and Customs (HMRC) said three people had been arrested on suspicion of attempting to defraud it of £1.4m. The authority said it was the first UK law enforcement to seize an NFT. NFTs are assets in the digital world that can be bought and sold, but which have no tangible form of their own. The digital tokens, which emerged in 2014, can be thought of as certificates of ownership for virtual or physical…

GMP Returning Millions to Crypto Currency Scam Victims

Digital Currencies, Fraud
The case marks a rare achievement for law enforcement in returning cryptocurrency funds to victims who have been duped by an international scam. More than £4m has been returned to the victims of a global cryptocurrency scam after specialist officers in Manchester acted on intelligence to track down two suspects – and police say £7m is yet to be claimed. A 23-year-old man and a 25-year-old woman have been arrested for fraud and money laundering offences after Greater Manchester Police (GMP) received intelligence that those running the scheme had been in the city for a limited time. In all 150…

Money Laundering via Cryptocurrencies up 30% in 2021

Digital Currencies, Money Laundering
Money laundering via cryptocurrencies increased in 2021 by 30% and is estimated to account for US$8.6 billion, claims a report recently published by blockchain analysis firm Chainalysis. Although only 0.05% of all cryptocurrency transactions worldwide are linked to the laundering of money, Europol says it could get much worse in the future. Criminals are becoming more sophisticated in their use of cryptocurrency transactions and their money laundering schemes are becoming increasingly complex, the European police agency said. The Chainalysis report indicates the origin of money being laundered to stem from darknet sales and potential ransomware attacks. Cryptocurrency transactions are supposed…

Crypto Scam Revenues Surge as ‘Rug Pulls’ Become ‘Go-To’ for Crooks

Digital Currencies, Fraud
Investment scams involving digital coins have become the biggest source of cryptocurrency-based crime in 2021, according to new data released on Thursday. In a report, Blockchain analytics company Chainalysis found that “rug pulls” has been a key driver behind the $7.7 billion in crypto taken from victims this year. The term describes a new scam in which developers of a crypto project issue what appears to be a legitimate crypto asset, lure in unsuspecting investors — only to run off with the funds, or sell all their holdings at a significantly higher premium. Rug-pulling drew attention recently, as a cryptocurrency…

Thailand to Define ‘Red Lines‘ for Crypto in Early 2022

Digital Currencies, Regulation
“Cryptocurrencies cannot become a means of payment,” Bank of Thailand governor Sethaput Suthiwartnarueput stated. The government of Thailand is preparing a new regulatory framework for cryptocurrencies like Bitcoin (BTC) to minimize risks and improve investor protection. The Bank of Thailand (BoT) will release a consultation paper in January that will define “red lines” for the crypto industry, governor Sethaput Suthiwartnarueput said in a Dec. 14 interview with The Bangkok Post. “We want to ensure that we strike the right balance between allowing financial innovation and managing risks,” the official stated. The new rules will provide adequate safeguards for consumers as…

Squid Game Crypto Token Collapses in Apparent Scam

Digital Currencies, Fraud
A digital token inspired by the popular South Korean Netflix series Squid Game has lost almost all of its value as it was revealed to be an apparent scam. Squid, which marketed itself as a “play-to-earn cryptocurrency”, had seen its price soar in recent days – surging by thousands of per cent. However, as the BBC reported, it was criticised for not allowing people to resell their tokens. This kind of scam is commonly called a “rug pull” by crypto investors. This happens when the promoter of a digital token draws in buyers, stops trading activity and makes off with…

FATF’s Updated Guidance Tells Regulators to Focus on Business Models Over Technology and Terminology

Digital Currencies, Regulation
On October 28, 2021, the Financial Action Task Force (FATF) released its updated guidance for how member jurisdictions should regulate cryptocurrency businesses. Back in March, FATF released a draft version of today’s guidance for industry review — you can read our comments on that release here. Today’s guidance largely mirrors the March proposal, with the key theme being FATF’s focus on regulating cryptocurrency businesses as VASPs based on their function and business model, rather than their underlying technology, self-described business category, or custodial status. Below, we’ll break down the most important provisions of FATF’s guidance and tell you how Chainalysis…

$56 Million in Seized Cryptocurrency Being Sold as First Step to Compensate Victims of BitConnect Fraud Scheme

Digital Currencies, Fraud
On Friday, U.S. District Judge Todd W. Robinson granted a request from the U.S. Department of Justice and the U.S. Attorney’s Office for the Southern District of California for authority to liquidate approximately $56 million in fraud proceeds seized from the self-described “number one promoter” of BitConnect, a cryptocurrency, who consented to the seizure. This liquidation is the largest single recovery of a cryptocurrency fraud by the United States to date. According to court documents, on Sept. 1, Glenn Arcaro, 44, of Los Angeles, pleaded guilty to participating in a massive conspiracy to defraud BitConnect investors in the United States…

US and UK Agree to Heighten the Focus on Illicit Use of Cryptocurrency

Digital Currencies
The U.S. and U.K. governments have “committed and agreed to heighten the focus on illicit use of cryptocurrency and ransomware,” the U.S. Department of Justice announced. According to the FBI, high crypto prices have partially made ransomware “incredibly lucrative for the criminals.” Governments Collaborate to Focus on Illicit Use of CryptoThe U.S. Department of Justice (DOJ) announced Friday that Deputy Attorney General Lisa Monaco and officials from its National Security Division and Criminal Division met with U.K. Home Secretary Priti Patel in Washington, D.C., on Thursday. “In their meeting, both governments discussed their close cooperation against numerous threats to their…

Israel to impose new AML rules on digital currencies

Digital Currencies, Money Laundering, Regulation
Israel is bringing its digital currency industry under the purview of its anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. The move is meant to stamp out crime from the sector and give it legal recognition and certainty. Israel’s Authority for Combating Terror Financing and Money Laundering recently announced that it’s seeking to raise its monitoring of digital currency transactions. Authority Director Shlomit Wegman said that the move would give the agency the ability to stamp out crime from Bitcoin. With the new regulations, virtual currency service providers (VASPs) now have clear standards to operate under, Wegman…

Crypto Exchange Chatex and Russian Nationals Indicted for Roles in Ransomware Operations

Digital Currencies, Sanctions
Today, the Department of Justice (DOJ) and U.S. Treasury’s Office of Foreign Asset Control (OFAC) announced joint indictments, arrests, and sanctions designations against organizations and individuals associated with ransomware attacks against U.S. companies. Telegram bot-based P2P cryptocurrency exchange Chatex, which shares a founder with recently sanctioned OTC service Suex, has now been added to the Specially Designated Nationals and Blocked Persons (SDN) List, thereby prohibiting Americans from doing business with the company. Additionally, three other companies were sanctioned for their role in setting up key infrastructure Chatex relied on to operate. It’s important to remember that unlike violations of anti-money…

Moscow’s Tallest Tower Is a Cybercriminal Cash Machine

Digital Currencies, Financial Crime
The crown jewel of Moscow’s business district, a 97-story glass tower known alternately as Federation Tower East or Vostok, is a tribute to Russia’s post-Soviet economic influence and national strength. Promotional materials for the building, which was the tallest in Europe when it was completed in 2017 and is now No. 2, boast of its highly paid staff and its supposed fortification against “missiles and explosions.” Its apartments are rented and owned by high-ranking government officials and C-suite executives. Residential units sell for upwards of $36 million. The building has also been home to more than a dozen companies since 2018…

Cryptocurrency fraud continues to plague UK

Digital Currencies, Fraud
So far in 2021, news reports reveal that cryptocurrency fraudsters have cheated over £146m ($200USD) out of victims in Great Britain. City of London police informed Bloomberg that since the start of this year, losses have mushroomed by 30% up on the number for the whole of 2020. The UK’s national fraud and cybercrime reporting centre is based within City of London police, where officials say that over 50% of the 7118 victims in this year to date are aged between 18 and 45. Detective chief inspector, Craig Mullish, said: “Reports of cryptocurrency fraud have increased significantly over the past…

Crypto Crime Landscape Shifts to Bigger Threats Targeting Smaller Numbers

Digital Currencies, Money Laundering, Terrorism
The use of cryptocurrencies for illicit activities from ransom money, money laundering and funding for terrorist activities continues unabated. The tightening regulation does not appear to be making enough of a difference yet. Over the past eighteen months, the Covid crisis appears to have made matters worse as the authorities shifted their focus to fighting the pandemic. While the Financial Action Task Force (FATF) continues to warn about illicit use of virtual currencies, even the task force’s member nations – including some of the leading G20 economies – have failed to transpose the latest FATF Standards into their domestic regulation.…

Police Seize $2.7m of Crypto From a British Teenager in a Credit Card Fraud Scheme

Digital Currencies, Financial Crime, Money Laundering
Police in England seized more than $2 million worth of crypto from a 17-year-old involved in a credit card scam. Lincolnshire Police said seized 48 bitcoin and other cryptocurrencies after discovering money-laundering links in the case. The teenaged boy was charged with false representation and money laundering. Police in an English county said they’ve seized more than $2 million worth of cryptocurrency from a 17-year-old boy who obtained the coins through online fraud. Detectives from the Lincolnshire Police’s cybercrime unit took possession of the digital currency in a case centered on an unnamed boy involved in an April 2020 credit…

How Governments Around the World Regulate Cryptocurrency

Digital Currencies, Regulation
In the early days of blockchain technology, cryptocurrencies operated in a gray area of the economy, their applications as unique as they were unregulated. But since then, as financial institutions have entered the industry and adoption has soared, the risk calculus has changed for regulators. While governments around the world have taken major steps to combat cybercrime and protect the users of cryptocurrencies, many believe the work is far from over. For this reason, it’s critical for investors, businesses, and institutions in the industry to understand both how governments regulate cryptocurrencies and how industry leaders can push the conversation forward.…

FATF Releases Updated Guidance on Virtual Assets

Digital Currencies, FATF
The FATF has issued its finalized guidelines providing clarifications on its previous crypto regulation recommendations. Key Takeaways Today FATF issued updated regulatory guidance on virtual assets and virtual asset service providers. It clarifies that NFTs or crypto-collectibles generally fall outside its virtual asset definition but may be considered such if used for payment or investment purposes. Developers, owners, and operators that “maintain control or sufficient influence” over DeFi protocols could be regulated as VASPs. VASPs are subject to various KYC, AML/CFT, licensing, and transaction reporting requirements depending on the jurisdiction. Today the global Financial Action Task Force (FATF), an independent…

Everything You Need to Know About OFAC’s New Sanctions Guidance for Cryptocurrency Businesses

Digital Currencies, Sanctions
On October 15, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) released Sanctions Compliance Guidance for the Virtual Currency Industry. This guidance follows the recent designation of Russia-based cryptocurrency Over The Counter (OTC) broker Suex, as well as an updated Advisory on ransomware payments, which we wrote about in our blog. The newly-released brochure reiterates OFAC’s previous guidance and outlines best practices in one comprehensive document. Specifically, OFAC’s guidance covers: Sanctions-related compliance requirements for cryptocurrency businesses Consequences for non-compliance and examples of how timely reporting can mitigate those consequences Best practices for building a risk-based compliance…

Cartels and Crypto

Digital Currencies, Organised Crime
If the massive spike in traffic across the U.S.-Mexico border continues at its current pace, total border arrests in 2021 will be the highest since 2000, when nearly 1.7 million illegal border crossers were apprehended by U.S. authorities. Down in Texas’ 23rd District, which encompasses 40 percent of the total southern border, residents are no strangers to the dangers that come with illegal border crossings, specifically those connected to cartel activity. A worrisome new technological development has arisen that can potentially lay the groundwork for these criminal elements to increase their drug and human smuggling operations exponentially. Latin American cartels…

Scammers Tricked Dating App Users Into Investing $1.4m in Fake Crypto Apps

Digital Currencies, Fraud
Despite tough App Store moderation, scam apps can still make their way onto iOS. But it requires a lot of social engineering work. It’s said that love makes people do illogical things. Apparently, those things include investing money into shady cryptocurrency apps that then steal your money, as that’s what scammers reportedly were able to do to victims on dating apps including Tinder and Bumble. Cybersecurity firm Sophos released a report recently documenting “CryptoRom,” a scam that led to $1.4 million being stolen from victims across the United States and Europe. Cryptocurrency-related scams are on the rise as more people…

Founders of Crypto ICO Plead Guilty to Tax Evasion After Raising $24m from Investors

Digital Currencies, Prosecutions, Tax Evasion
The owners of a cryptocurrency company have pleaded guilty to tax evasion, announced Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham. Bitqyck founders Bruce Bise, 60, and Samuel Mendez, 65, were charged with tax evasion in August. Mr. Bise pleaded guilty on Sept. 9; Mr. Mendez pleaded guilty this morning. According to plea papers, Mr. Bise and Mr. Mendez admitted that Bitqyck raised approximately $24 million from more than 13,000 investors. Instead of fulfilling their promises to these investors, the defendants used Bitqyck funds on personal expenses, including casino trips, cars, luxury home furnishings, art, and…

An Overview of the Use of Cryptocurrencies in Terrorist Financing

Digital Currencies, Terrorism
By Heidi Wilder, Senior Associate, Coinbase Special Investigations Team Following the fall of the elected Afghan government and rise of the Taliban in its place, many speculated that the group had or may turn to cryptocurrencies as a way to finance its operations. As part of our compliance program, Coinbase tracks these types of transactions and often works with law enforcement agencies around the world on interdiction and enforcement efforts. A quick step back With institutional and consumer interest in crypto at an all-time high, alongside the continued rise of DeFi, 2020 and 2021 have seen cryptocurrency achieve the mainstream…

Why Cryptocurrency Matters in the AML World

Digital Currencies, Money Laundering
Since Bitcoin’s launch in 2009, cryptocurrency has driven new markets, spurred advancements in financial infrastructure and driven innovative thinking in how to meet the world’s economic needs. However, many stakeholders, including regulators, compliance professionals and law enforcement, still do not understand cryptocurrency or its anti-money laundering (AML) impact. That needs to change as cryptocurrency adoption continues to grow. While research indicates that the vast majority1 of cryptocurrency transactions are for legitimate purposes, cryptocurrency’s place outside the traditional financial system gives it a special appeal to cybercriminals and other bad actors. As such, it is essential for those in the AML…

Chinese Regulators Unite Forces to Crack Down on Crypto

Digital Currencies, Regulation
The Chinese central bank is setting up a “coordination mechanism” with state agencies to continue battling crypto. The Chinese government is getting more serious about cracking down on the cryptocurrency industry as state authorities are bringing forces to combat crypto operations in the country. The People’s Bank of China (PBoC) officially announced on Friday a set of new measures to fight against crypto adoption in China, including promoting stronger inter-departmental coordination in cracking down crypto activity. 10 Chinese state authorities, including the PBoC, the Cyberspace Administration of China and the Ministry of Public Security, have established a “coordination mechanism” to…

U.S. Sanction Crypto Exchange over Ransomware Attacks

Digital Currencies, Sanctions
For the first time ever, U.S. authorities imposed sanctions against a virtual currency exchange for its role in facilitating financial transactions for ransomware actors, the Department of the Treasury’s Office of Foreign Assets Control (OFAC), said in a statement Tuesday. “All property and interests in property of the designated target that are subject to U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from engaging in transactions with them,” read the statement. OFAC claims that SUEX OTC enabled transactions involving at least eight ransomware variants’ illegal proceeds, and that a study revealed that illicit actors were involved in more…

Behind Suex.io: the first sanctioned cryptocurrency exchange

Digital Currencies, Sanctions
This morning, OFAC sanctioned SUEX.io, a concierge cryptocurrency exchanger incorporated in Czechia but operating in Russia. This action comes as OFAC and the US Government writ-large try to tackle the festering problems posed by ransomware, and the criminal syndicates using it to extort billions of dollars out of victims around the world. SUEX filled an essential niche in the ecosystem of underregulated exchanges that, either through willful ignorance or witting cooperation, facilitate the conversion of illicit crypto ransoms into real-world currency. SUEX largely communicated with its clients on the Telegram app and accepted new customers on a system of referrals…

29 Crypto Exchanges Meet Registration Deadline But Face Challenges

Digital Currencies, Regulation
Twenty-nine of Korea’s 66 cryptocurrency exchanges met a legal deadline to put themselves under regulatory supervision, but they still face challenges, market insiders said Sunday, such as risks from legal breaches and an inability to convert coins into Korean won. The Financial Services Commission said Saturday that 29 exchanges submitted applications to register their businesses by Friday and will process them within three months, legitimizing their status as market players but also subjecting them to regulatory monitoring and supervision. The registration brings them out of local legal blind spots, but the exchanges now have to abide by global rules on…

London Court Orders Binance to Trace Cryptocurrency Hackers

Digital Currencies, Financial Crime
London’s High Court has ordered Binance, one of the world’s largest cryptocurrency exchanges, to identify hackers and freeze their accounts after one user said it was the victim of a $2.6 million hack. In a judgment made public this week, a High Court judge granted requests by artificial intelligence (AI) company Fetch.ai for Binance to take steps to identify the hackers and track and seize the assets. While involving a relatively small sum, the case is one of the first public ones involving Binance and will be a test of the English court system’s ability to tackle fraud on cryptocurrency…

Cryptocurrency is Better for Anti-Money Laundering Than You Might Think

Digital Currencies, Money Laundering
Cryptocurrencies are a haven for fraud, money laundering, and all sorts of criminal activity —this has been a truism since the first days that cryptocurrencies became a topic of conversation in regulatory circles. This perceived risk carried through to compliance functions in banks across the country, where account closures were common for anyone found to be buying Bitcoin. This mindset shifted in recent years, with FinCEN, FATF, and other regulatory bodies acknowledging that blockchain technology carries significant potential worth exploring. They began developing new frameworks to manage the risks presented by the many novel aspects of blockchain technology without stifling…

Dark Web Drug Dealer Indicted for Laundering $137 Million in Bitcoin From Prison

Digital Currencies, Money Laundering
A drug dealer, jailed since 2018 over drug charges, has been indicted for laundering 2,933 Bitcoin while in prison. In brief Maryland’s “Xanaxman” had to forfeit 4,000 Bitcoin in November 2018. That would be worth $187.2 million today. But he allegedly continued his Bitcoin dealings while in prison. He is now indicted for laundering 2,933 Bitcoin, worth $137 million. A dark web drug dealer from Maryland known as Xanaxman is accused by a Maryland federal court of laundering $137 million worth of Bitcoin from prison. Xanaxman, real name Ryan Farace, was imprisoned three years ago for selling Alprazolam, a form…

American Pleads Guilty To Laundering Over $300 Million In Bitcoin

Digital Currencies, Money Laundering
A man in Ohio pled guilty on Wednesday to laundering over US$300 million in bitcoin through his cryptocurrency service accessible on the Darknet. Larry Dean Harmon, 38, admitted to having orchestrated the operation through his bitcoin “mixer”, known as Helix. Helix allowed users, for a fee, to transfer bitcoin, whilst concealing their identity, according to the U.S. Department of Justice. At its core, Helix gave customers the means to conceal their illicit transactions from law enforcement. The service could be accessed through a Darknet search engine known as Grams, which was also run by Harmon. Over 350,000 bitcoin found their…

Binance Crackdown: Regulators Tussle with the “Wild West” World of Crypto

Digital Currencies, Regulation
Changpeng Zhao’s company Binance is everywhere and yet based nowhere. The cryptocurrency exchange has processed trillions of dollars in trades this year as it transfers digital and conventional money around the world through a constellation of affiliates. And yet it has no headquarters. Incorporated in the Cayman Islands, the company has grown at extraordinary speed into a leading player in the fledgling industry. But the 44-year-old Canadian-Chinese mogul’s business empire is now attracting intense scrutiny from global watchdogs as they grapple with new financial entities that act in many jurisdictions but are rooted in none. Binance has led a peripatetic…

Binance CEO ‘Responds to Global Regulatory Pressure Calling Compliance a Journey’

Digital Currencies, Regulation
“We are seeing wider adoption of cryptocurrencies globally and the need for clearer regulatory frameworks in different countries,” said CZ. Binance CEO Changpeng “CZ” Zhao has likened the recent pressures by regulators against his exchange business to that of the initial development of the car. In an open letter on Wednesday, CZ said the adoption and development of crypto contained many parallels to regulations around automobiles in that “laws and guidelines were developed along the way.” “We are seeing wider adoption of cryptocurrencies globally and the need for clearer regulatory frameworks in different countries,” said CZ. “More regulations are, in…

AML Compliance Mandatory for Foreign Crypto Exchanges, says Korean Regulator

Digital Currencies, Regulation
South Korea’s strict crypto regulatory oversight is now extending to overseas exchanges that offer cryptocurrency trading services denominated in the country’s currency. Eun Sung-soo, chairman of South Korea’s Financial Services Commission (FSC), said that foreign crypto exchanges that deal in the Korean won must comply with the country’s Anti-Money Laundering (AML) standards. According to The Korea Herald on Tuesday, Eun made these comments while fielding questions from lawmakers about the FSC’s plans to regulate crypto exchange giant Binance. Eun reiterated the need for overseas exchanges offering won-denominated crypto trading pairs to comply with the same Anti-Money Laundering standards as platforms…

FinCEN has turned its attention to crypto

Digital Currencies
The U.S. Financial Crimes Enforcement Network (FinCEN) has identified cryptocurrencies as one of the anti-money laundering and countering the financing of terrorism (AML/CFT) priorities. In the agency’s first list of government-wide priorities published Wednesday, FinCen has highlighted eight priorities; corruption, cybercrime and relevant virtual currency considerations, terrorist financing, fraud, transnational criminal organization activity, drug trafficking, human trafficking and proliferation financing. Currently, the list of priorities is not connected to any policies, however the agency will issue regulations at a later date specifying guidelines on how financial institutions should incorporate these Priorities into their risk-based AML programs. The priorities comes in…

U.K. financial watchdog bans cryptocurrency trader Bianance

Digital Currencies
The Financial Conduct Authority (FCA) has prohibited Binance Markets Limited (BML) from undertaking any regulated activity in Britain. The company is part of the Binance Group, which terms itself as operating the world’s leading cryptocurrency exchange. The FCA said: “No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK. The Binance Group appear to be offering UK customers a range of products and services via a website, Binance.com,” it added. In a series of tweets, the company responded by saying: “BML is a separate legal entity and…

Biden proposes more stringent regulations to catch crypto tax evaders

Digital Currencies, Tax Evasion
Biden’s Fiscal Year 2022 Revenue Proposal aims to catch crypto tax evaders by reinforcing existing information reporting rules and information sharing agreements between jurisdictions. What is Information Reporting? Information reporting is the primary way that regulators like the IRS knows about your crypto activity. Cryptocurrency exchanges are required by law to collect your personal identification information (name, address and social security number) and report your annual activity to the IRS by using forms such as 1099-K, 1099-B and 1099-MISC. If exchanges fail to report this information correctly, they get subject to hefty penalties. Expanded 1099-K Reporting Currently, crypto exchange users…

FCA: Many Crypto businesses fail to meet regulations

Digital Currencies, Money Laundering
A ‘significantly high number’ of cryptocurrency firms have failed to comply with the U.K.’s trading standards and are struggling to meet anti-money laundering rules, Britain’s financial regulator said last week. Since January 2020, crypto firms operating in the U.K. are required to register with the Financial Conduct Authority (FCA) and comply with local money laundering, terrorist financing and transfer of funds regulations. Additionally, last December the agency granted a temporary registration for existing firms that will allow crypto businesses to continue operating while their applications are still under assessment. The FCA has said many businesses have failed to meet the…