The Financial Conduct Authority (FCA) warns that at least 111 cryptocurrency firms are posing risk to the financial system, Reuters has learned. According to Mark Steward, the FCA's Head of Enforcement and Market Oversight, the companies are highly volatile and work without necessary registration.
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"We have a number of firms that are clearly doing business in the UK without being registered with us and they are dealing with someone: banks, payment services firm, consumers," Steward added.
The FCA warning comes after 50 firms withdrew their applications for registration to comply with anti-money laundering rules. According to the FCA, only five firms registered with the watchdog since January, while 90 have temporary registration. However, the watchdog says this status does not mean the firms are registered completely.
Earlier in March, the FCA extended the number of firms that are obliged to report on financial crime. Now, the British watchdog requires crypto-related businesses to submit the annual REP-CRIM financial crime report. Hence, all cryptocurrency firms based in the UK are supervised under the Money Laundering Regulations (MLRs).
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