The UK’s financial watchdog, the Financial Conduct Authority (FCA), has warned that a significant number of cryptocurrency businesses are falling short of anti-money laundering (AML) rules. The FCA has ordered all unregistered crypto firms, which are not compliant with the UK’s AML regulations, to cease trading. The move follows the regulator’s refusal to register many of these businesses due to their failure to meet the required standards.
The FCA’s decision has affected 64 companies, forcing them to stop trading. It is part of a wider crackdown on crypto businesses, as the regulator has refused to register 51 firms. The FCA has also issued consumer warnings about 111 unregistered crypto companies.
The regulator’s actions are in response to growing concerns about the risks associated with cryptocurrencies, including the potential for money laundering and fraud. The FCA has urged consumers to withdraw their money from unregistered firms.
The FCA’s stance aligns with global efforts to regulate the crypto market. The European Central Bank has called for tighter regulation, while China has banned financial institutions from offering crypto services. The FCA’s actions are a significant step in the UK’s attempt to regulate the growing crypto market.
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