The UK Treasury has released a consultation paper, specifically for amending anti-money laundering rules in the country, which could also impact rules for regulating crypto.
The United Kingdom Treasury has suggested a few changes in the country’s anti-money laundering (AML) rules. The regulatory body published its views in a consultation paper and clarified the new stances for crypto firms. Regulating crypto in the UK could also see significant changes with the changes.
The Treasury proposed to make changes to the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). While recommending smarter regulations, the regulator clarified it as a minimal regulatory burden and accountable, responsive regulators. According to the Treasury, regulations should be a last resort, not a first choice.
In the same paper, the regulator also outlined changes for crypto firms. Firstly, it stated that the Financial Conduct Authority is legally responsible for regulating all UK crypto firms. It listed all the essential developments in the country that led to the current rules for the industry.
Finally, the paper mentioned, “The proposed change will capture many crypto firms currently registered with the FCA for MLR purposes only. It is the government’s intention that these MLR only registered crypto firms will need to apply for FSMA authorization when the new regime comes into force.”
The FSMA refers to the Financial Services and Markets Act of 2000. At the same time, the document clarified a key exception. It said the UK crypto firms need not apply for authorization under both the MLRs and FSMA. It revealed that it implemented the rule since it received similar requests in the recent digital securities sandbox.
The news about changes in the crypto regulatory rules in the UK comes after another event. Just a day ago, the London Stock Exchange decided to start accepting applications for crypto ETNs.
Head to Millionero’s blog for regular updates on the crypto sector!