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UK crypto firms must now submit yearly financial crimes reports



The UK’s Financial Conduct Authority has included cryptoasset companies underneath the financial crimes reporting umbrella eight months after initially asserting plans to take action.

The FCA made this recognized through a coverage assertion issued on its web site on Wednesday. This transfer comes because the nation’s financial regulator has elevated the variety of firms required to submit annual financial crime report often known as “REP-CRIM” from 2,500 to about 7,000.

In response to the coverage assertion, the FCA declared that compliance with REP-CRIM reporting was a needed software to allow regulators to fight cash laundering actions. In its 2020/2021 marketing strategy, the FCA acknowledged:

“We will strengthen our rules to prevent money laundering, as well as working with domestic and international stakeholders to support a joined-up approach to cryptoassets.”

Through the preliminary announcement of the plan again in August 2020, the U.Okay. regulator stated the transfer was a part of efforts to undertake a data-focused strategy to fintech regulation. As reported by Cointelegraph on the time, financial crimes reporting obligations are no matter the crypto agency’s complete annual income.

Following the coverage assertion announcement, U.Okay. crypto firms included within the prolonged REP-CRIM regime might want to submit their financial crime report by the due date.

For the FCA, cryptoasset companies discuss with cryptocurrency exchanges and custodial pockets suppliers. The introduction of REP-CRIM reporting requirement follows on from the regulator’s elevated oversight of the digital forex house which incorporates obligatory registration for digital asset firms.

Certainly, the FCA has been supervising Anti-Cash Laundering compliance of U.Okay. crypto companies since January 2020. A backlog of cryptocurrency enterprise registration purposes compelled the FCA to create a brief licensing regime again in December 2020.

The FCA’s ban on retail derivatives buying and selling additionally went into impact in January 2021.

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