The UK financial regulatory agency sticks to its decision to continue implementing stringent rules in the registration process of businesses involved in cryptocurrencies.
The Financial Conduct Authority (FCA) asserted that UK’s tough regulations on crypto firms serve as a deterrence to prevent these companies from becoming conduits for any money laundering activities.
Strict Rules Necessary
The FCA upheld the strict registration process under the Money Laundering Regulations (MLRs), stressing that the regulations are vital to safeguard the integrity of the UK’s financial system.
In a statement, Val Smith, head of payments and digital assets in FCA’s authorizations division, said that the standards will set the stage for a thriving, competitive cryptocurrency sector that protects the people and the financial markets’ integrity.
Smith defended the MLRs from critics who argue that the rigorous regulations may stunt the growth of the UK’s cryptocurrency sector.
Dealing With Money Laundering Seriously
Smith said that the regulatory office aims to keep crypto firms from being conduits of money laundering activities even if the consequence is a lower number of crypto businesses getting registered.
“We never turn applications down out of hand. But we treat the risk of firms being used for money laundering extremely seriously. Allowing illicit money to flow freely can destroy lives,” Smith said.
He added that the MLR requirements help tackle “real-world issues” such as organized crime, terrorism, and human trafficking.
Maintaining Universal Standard
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Author: Christian Encila
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