Financial Crime Reports Must Now Be Submitted Annually by UK Cryptoasset Businesses
By Ollie H - Crypto Consultant - 31-03-2021
The FCA had recently confirmed this in a policy statement that had been published on its site on Wednesday. This action follows the country's financial regulator's decision to raise the number of companies needed to send an annual financial crime report recognized as "REP-CRIM" from 2,500 to approximately 7,000.
“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 crypto assets.”
When the proposal was first revealed in August 2020, the UK regulator claimed that it was part of plans to integrate a data-focused strategy to fintech regulation. With financial crimes reporting obligations regardless of the crypto broker firm's gross annual sales.
Crypto market investment businesses are described by the FCA as cryptocurrency exchanges and custodial wallet providers. The necessity for REP-CRIM reporting reflects the regulator's expanded regulation of the digital currency space that involves mandatory registration for digital asset firms.
Since January 2020, the FCA has been overseeing the Anti-Money Laundering enforcement of U.K. crypto buying companies. The FCA was forced to establish a transitional licensing regime in December 2020 due to a shortage of cryptocurrency trading company registration applications.
The FCA's retail derivatives trading ban went into effect in January 2021 as well.