The financial markets watchdog rejected 87% of crypto applications due to money laundering concerns. The FCA has faced criticism for its slow approval rate.
The Financial Conduct Authority said the number of applications for crypto firms scrapped due to money laundering concerns has increased by 87% compared to last year. Report Released on Thursday.
is from 85% is the last in 2023, and far above the industry average of 36% of financial institutions that had applications rejected, rejected or withdrawn due to weak money laundering controls.
“We assist firms applying for authorization by communicating our expectations and issuing guidance on good and poor practice,” the FCA said in the report. “This helps organizations understand what is required – 44 crypto organizations now have money laundering registration.”
The news comes as ousted Prime Minister Rishi Sunak's 2022 pledge to make the UK an innovation hotbed stalled. Early elections called by Sunac in May delayed laws promised to regulate the industry.
“It's a net negative because we're behind,” Ian Taylor, an adviser to the board of trade firm CryptoUK, said. News In May. “We are lagging first in the rest of Europe, then other jurisdictions in Asia and the Middle East.”
A low acceptance rate will do little to assuage those industry concerns.
No permits since February
Firms must register with the FCA if they want to offer services such as crypto trading or offering wallets.
The regulator approved only 4 35 applications This is what crypto firms have gained over the past 12 months. Institutional market maker Portofino Technologies was the last firm to be approved in February Registry of the Regulator.
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While the industry has lamented the low acceptance rate, the regulator has defended itself.
“We expect firms to be fit and proper and have adequate systems in place to detect and prevent money flows from crime,” an FCA spokesman said. News In August.
Oliver Lynch, CEO Useless Crypto exchange Bittrex Global, said News In February, the system did not understand that crypto firms were insisting that they had not been approved.
“Firms may have expected to be fast-tracked or given an easy ride by the FCA, and they now find they underestimated the robustness of the system,” he said.
“That's a good thing.”
Eric Johnson is the news editor for DL News. Got a tip? Email at [email protected].
