The UK Adopts the 5AMLD Guidelines to Prevent Cryptocurrency Risks

News / 07.03.2020

The finance and the economics department of the UK recently strengthened measures to curb the risks associated with cryptocurrencies. Therese Chambers, the Director of Retail and Regulatory Investigations, revealed the new regulations in a speech on the 6th of March 2020.

Chambers noted that the UK’s Financial Conduct Authority (FCA) is the official overseer of the Anti-Money Laundering for some crypto objectives, as per the new Money Laundering Regulations (MLR).

Chambers Speech on Cryptocurrency Regulations

Chambers noted that the UK’s new Money Laundering Regulations go beyond the 5th Anti-Money Laundering Directive (5AMLD) and entail a broader set of activities including ICOs, as recommended by FATF in 2019. The EU made 5AMLD a law in July 2018 and later came into effect on the 10th of January 2020.

Chambers believes that cryptocurrencies face many money laundering risks since they allow anonymous financial transfers. She clarified that the FCA’s regulatory oversight focuses on the crypto space’s business dealings. 

The MLRs apply to exchanges that offer fiat pairings and those that deal in crypto pairings. It also includes Custodial wallet providers, ICOs, IEOs, and crypto ATMs. Chambers said that any company conducting the activities mentioned above must show the FCA risk assessment, customer due diligence, transaction monitoring, record-keeping, and suspicious activity reporting.

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Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.