Jakarta, CNBC Indonesia – Many companies that are cryptocurrency exchange facilitators do not pass UK money laundering tests. Up to 50 companies trading crypto assets such as Bitcoin could potentially be shut down.
The Financial Conduct Authority (FCA) on Thursday (03/06/2021) announced that this number of findings was unprecedented. The companies have been warned that they fail to meet anti-money laundering standards.
Companies whose licenses are revoked are required to stop trading immediately. Until they can meet supervisory standards and be included in the official register of registered businesses.
Companies that refuse to close could face fines or legal action by the FCA. A number of regulators around the world have cracked down on cryptocurrency exchanges, which have been linked to money laundering and black market transactions.
Last month Chinese regulators banned banks and payment companies from offering clients any services involving cryptocurrencies. Also provides risk warnings associated with trading crypto assets.
The Governor of the Bank of England, Andrew Bailey, has told investors that they should be prepared to lose all their money if they dabble in cryptocurrencies, as quoted from The Guardian, Saturday (05/06/2021).
Crypto assets are not covered by a UK scheme that helps investors get cash back when companies go bankrupt.
The price of bitcoin has fallen 40% since its all-time high of more than $64,000 in mid-April. On Thursday afternoon it was traded at US$ 38,706.
Only five crypto asset companies have been accepted on FCA’s official list so far, another 90 companies are being assessed through a provisional clearance scheme, which has been extended by nine months to allow FCA to fully review all applications.
While another 51 have withdrawn their applications, some may not be covered by FCA rules to register, meaning not all of them will be forced to close.
– (hps / hps)
wash money
