Many crypto firms fail to meet UK money laundering rules

According to the Financial Conduct Authority, there is a “significantly high” number of cryptocurrency firms that are failing to meet UK money laundering rules.

The regulator said that this resulted in an "unprecedented number" of crypto firms withdrawing applications to register with the regulator, which are compulsory.

The regulator introduced a temporary licensing regime for firms whose applications haven’t yet been approved to allow them to continue trading.

“A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations resulting in an unprecedented number of businesses withdrawing their applications,” the FCA said in a statement.

“The extended date allows cryptoasset firms to continue to carry on business whilst the FCA continues with the robust assessment being undertaken.”

Just five crypto companies are currently registered with the FCA. Those include Tyler and Cameron Winklevoss’ Gemini and British start-up Ziglu. There are dozens of applicants sitting on the Temporary Registration Regime list.