UK Financial Regulator Rejects Crypto Firm Applications Due to AML Concerns
CryptoNewsTerminal Staff05 Sep, 2024
UK Financial Regulator Rejects Crypto Firm Applications Due to AML Concerns
The UK Financial Conduct Authority (FCA) has rejected over 87% of crypto firm applications seeking registration last year. Out of 35 businesses seeking authorization in the last financial year (2023/24), only four were approved. The main reason for the rejections was inadequate anti-money laundering (AML) controls. The FCA has been vocal about its concerns over AML in the crypto industry, and has emphasized the need for rigorous compliance with AML regulations. In addition to the AML concerns, the FCA has also introduced new rules requiring crypto firms to promote their services in a way that is “clear, fair, and not misleading.” This comes after the regulator found that some firms were using misleading or unclear language in their marketing materials. The FCA's strict approach to crypto regulation has been welcomed by some industry participants, who argue that it will help to protect investors and ensure the long-term growth of the industry. However, others have criticized the FCA for being too slow and inefficient in its processing of applications.
