The UK’s Financial Conduct Authority is cracking down on cryptocurrency exchanges, ATMs, and open-source projects like wallet providers. These services will have to comply with anti-money laundering regulations by 2020, imposing banking-style controls over crypto in the nation.
The bombshell came as part of the FCA’s newly released policy statement on cryptocurrency, “PS19/22: Guidance on Cryptoassets,” aimed at token issuers, software developers, exchanges, or investment firms dealing in cryptocurrencies.
Most notably, the financial watchdog said all “entities” engaging in any of the following activities will be forced to comply with UK AML laws, including:
- Cryptocurrency exchange services and peer-to-peer exchange services
- Cryptocurrency ATM services
- Transaction of cryptocurrency
- Issuance of new tokens
- Publication of open-source software involving cryptocurrency
What will the AML requirements entail?
Crucially, the new laws could have radical implications for all stakeholders facilitating crypto transactions in the country. For regular users—anywhere in the world—using a service that operates in the FCA’s jurisdiction may mean they need to unveil their anonymity.
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Author: Jonnie Emsley