The United Kingdom's financial watchdog, the Financial Conduct Authority (FCA), has been taked with anti-money laundering (AML) and counter terrorist financing (CTF) compliance supervision for companies dealing with cryptocurrencies, Cointelegraph reports on January 12th.
In addition to the announcement the regulator will be conducting compliance checks, they have also released a series of requirements for cryptocurrency-related businesses, including identification and assessment of AML and CFT risks, development of elimination policies and controls for the said risks and the know your customer process. The FCA stated “We will proactively supervise firms’ compliance with the new regulations, and will take swift action where firms fall short of desired standards and cause risks to market integrity.”
Anti money laundering and counter terrorist funding compliance remains the biggest issue regulators across the world have with cryptocurrencies. It is therefor small wonder that the U.K. has decided to put its financial regulator on the task of supervising companies dealing with cryptocurrencies in order to insure compliance with this regulation. If more countries would follow their example, we could soon be rid of the stigma these illegal activities bring to the entire space and benefit from the adoption that would ensue. However, as traditional regulation moves at a much slower pace than the space, it could be years till we see these regulations properly defined and enforced.