Crypto firms in the UK that couldn’t meet up with the Anti-Money Laundering(AML) policies set by officials are on the verge of packing up. The stringent AML is posing to be an obstacle to the transactions carried out by Crypto companies in the country.
In an official report by the Financial Conduct Authority(FCA), a lot of crypto enterprises will cease operations in the country soon.
The agency’s report on Thursday stated that a lot of crypto firms do not meet the AML requirements .To this end, many enterprises have retracted their applications. In a report by Guardian, 51 firms are for now affected as they are yet to meet the requirements. These firms may not continue functioning in UK.
Crypto businesses that had their applications retracted are automatically not eligible to run their normal business as they may be in danger of facing the law. Operations can only be run by such firms when they are certified by the FCA regarding the AML rules after which they will enter the board’s monitoring list.
In Cointelegraph’s earlier report, the time for the provisional registration for crypto enterprises is from July this year to March next year. This is to provide the board enough time to handle applications submitted before now.
The board said 5 firms have completed registrations with 90 in the waiting upon the board for enrollment. Amongst the 51 firms that retracted their enrollment request, some may not have their operations under the umbrella of FCA, hence may not necessarily fold up.
After the enrollment period, enterprises that couldn’t meet the set down rules will be mandated to reimburse customers of their money.It was in January of the previous year that FCA was made the supervisory agency in charge of AML for crypto. This also marked the beginning of the mandatory enrollment.
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