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Contents

Crypto exchanges will be held accountable for money laundering threats

Crypto exchanges will be held accountable for money laundering threats
CONTENT

  • UK financial regulator demands detailed report from exchanges

  • Potentially dangerous clients will be under FCA control

  • FATF intends to fight crypto corruption around the world

International consortium of news organizations, developing transparency standards.

The UK’s chief financial regulator wants to oblige all cryptocurrency exchanges and cryptocurrency wallet developers who operate in the country to submit reports on money laundering attempts.

Hide from FCA will not work

The UK Financial Conduct Authority (FCA) said it plans to expand the obligations it imposes on companies to communicate the risks of money laundering.

Crypto exchanges will be held accountable for money laundering threats

Such a proposal was publicly posted on the regulator’s website for further public discussion. The agency is ready to accept proposals and amendments from the exchanges themselves and other companies registered in the UK until November 23 of this year. New rules for cryptocurrency exchanges and crypto wallet providers will be presented in the first quarter of 2021.

According to the new proposal, all “cryptoasset exchange providers and custodian wallet providers” must provide the FCA with a financial crime risk report “regardless of their total annual income.” The report will include information on the number of clients of the firm with a “high risk level”, the number of clients who “abandoned or left the company for reasons of financial crime” and “the most common cases of fraud”.

It is noteworthy that such reports will also have to be provided by companies that are registered in offshore zones, but operate in the UK..

Crypto exchanges will be held accountable for money laundering threats

Earlier, BeInCrypto wrote that cryptocurrency exchanges that are registered in the Cayman Islands, Cyprus and other offshore zones will be required to comply with the requirements of the regulators of the country in which they operate, including taxation, providing information at the request of supervisory and regulatory authorities.

FATF declares war on crypto-corruption

Note that tracking transactions, as well as providing information about potentially dangerous transactions to regulatory authorities is one of the requirements of the FATF policy.

Crypto exchanges will be held accountable for money laundering threats

An organization that is engaged in the fight against money laundering around the world puts forward stringent requirements for cryptocurrency organizations.

For example, recently FATF presented a new policy for the circulation of stablecoins in the world. And if previously stablecoins were not considered as a digital currency, today, according to the FATF, stablecoins can be used by corrupt officials.

By the way, today a number of countries, such as Ukraine, Russia and others, are creating and implementing special services and tools for controlling cryptocurrency transactions in order to prevent cases of money laundering through cryptocurrencies..

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