To combat the alleged risks associated with their crypto assets and networks, Her Majesty's Treasury, UK Treasury, has additional additional measures.
New money laundering regulations or MLR (Money Laundering Regulations) of the Financial Regulatory Authority (FCA) The UK is the place to monitor the prevention of money laundering (AML) for a number of cryptocurrencies, the Chief Executive Officer. investigate and regulate the law of Therese Chambers speaking in March 6 speech.
These MLRs pass 5MLD to include a broader set of activities, such as ICOs, as recommended by FATF last year, Ms. Chamber said.
The EU has very strict AML laws
The European Union strengthened new AML regulations in July 2018, called the Fifth Anti-Money Laundering Directive, or 5AMLD.
To avoid the new 5AMLD regulations, the Deribit exchange left the Netherlands in January 2020, and sought a berth in Panama.
In his speech, Chambers stated that cryptocurrencies have a significant risk of money laundering, as they allow transfers of financial value without requiring a financial intermediary, meaning that users can deposit money. incognito.
Chambers noted that the dual goal of protection is needed, but growth must be innovative, not because of fear and lag.
Chambers explained that FCA's regulatory overview focused more on business transactions in the cryptocurrency space.
MLRs involve exchanges that offer crypto-fiat pairs (like BTC / USD), as well as transactions within crypto-crypto pairs (ETH / BTC). Chambers also includes FCA's rights over custodial wallet providers (custodial wallet), ICO, IEO and ATM electronic money.
Any activity mentioned must include a risk assessment from FCA, such as customer due diligence, transaction monitoring, record keeping and suspicious activity reporting, she said.
Although Chambers mentioned that protection supports innovation, the anonymity behind Bitcoin and other crypto assets is one of the industry's brand attributes. However, governments continue to supplement such regulations.
In August 2019, Bitcoin Magazine reported the Financial Action Task Force, or FATF, also aimed at quelling anonymity in the cryptocurrency space.
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