Even as the crypto market continues to expand in the U.K, industry players have been struggling to meet regulations. According to an official of the Financial Conduct Authority, is about 5 crypto-related businesses are compliant with the country’s anti-money laundering laws.
The official stated that, of all the firms that the FCA had assessed, 90% pulled out of the process. The challenge lies in the registration process. This is according to U.K economic secretary to the Treasury and member of the U.K parliament John Glen.
Glen noted that the FCA faced a huge challenge in registering crypto companies under Anti-Money Laundering regulations.
Glen added that so far, about one hundred and sixty-seven were in the process of registration. Out of these, about seventy-seven have their applications yet to be assessed.
Glen also indicated that the FCA could not process most of the applications within the deadline it had set. That’s because most of the firms being reviewed did not have anti-money laundering systems or the staff to make compliance possible. This forced the FCA to continue trading without the AML procedures.
The temporary regulatory gap will continue until July 9th, when the FCA will decide on the way forward. However, Glen noted that consultations are ongoing within the government on the way forward.
For the last few months, the FCA has been making crypto firms compliant with anti-money laundering regulations. Back in March, the FCA stated that all crypto companies would be required to file annual financial crimes reports.