UK FCA Now Requires Financial Crime Reporting From Crypto Firms
2 min read
The UK’s financial services regulator, the Financial Conduct Authority (FCA) has today announced that it will require crypto asset businesses operating in the UK to submit REP-CRIM annual financial crime reports.
The regulator published a policy statement detailing its new policy. The FCA’s decision follows a ban on crypto derivatives for retail investors, which came into force earlier this year.
We have published our policy statement, which will see #crypto asset businesses added to the types of firms required to submit the annual financial crime report. https://t.co/sbk62IH2N5
— Financial Conduct Authority (@TheFCA) March 31, 2021
“This policy statement proposes that additional firms and cryptoasset businesses should be brought into scope of the return based on their business activities and the potential money laundering risks,” the FCA said.
Those who have paid attention to the FCA’s views on cryptocurrencies might not be surprised by this announcement. Earlier this year, the regulatory authority issued a very reasonable public warning about the risks inherent in the crypto industry. The warning showed that the FCA was concerned about consumer protection—as a regulator should be, of course—as well as price volatility, product complexity, charges and fees, and marketing materials.
“Consumers should be aware of the risks and fully consider whether investing in high-return investments based on cryptoassets is appropriate for them,” the FCA said at the time, even going as far as to add: “If consumers invest in these types of product, they should be prepared to lose all their money.”
