Altcoins, Cryptocurrency

What’s New With UK Financial Reporting for Crypto Firms?

Moving forward in the United Kingdom’s crypto industry, we will see the Anti-Money Laundering Requirement (AML) requirements in its reporting.

Based on the Financial Conduct Authority published this August proposed the extension of annual finance crime reporting compliance to cover all crypto assets exchange and wallet providers.

With the added requirement, there would be a broader range of firms that the regulator can monitor, especially in deepening and analysis on circumstances of form which may have intrinsic value and the accompanying risks for laundering brought by these activities.

As well, the paper claims that the information presented through more comprehensive annual reports will bolster the FCA’s supervisory approach in the financial sector to achieve becoming more “data-led.”

Since 2016, the FCA has been seeking to use data analytics to innovate its regulatory approach and reduce the burden on enterprises, while mitigating money laundering risks to the U.K.’s financial system and ensuring its overall integrity.

Additional data, according to the paper, permits a risk-based and targeted approach to financial crime supervision.

An estimated 4,500 firms can be obtained more data. According to the reports, this is. The regulator estimates that by extending reporting obligations to a broader range of firms, including crypto-asset service providers, it will acquire data for an additional 4,500 firms annually.

More data, according to the paper, permits a risk-based and targeted approach to financial crime supervision.

In the past, reporting obligations are irrespective of firms’ total annual revenue. They are also mandated to reveal the resources they assign to tackling financial crime and the number of suspicious activity reports they send to the National Crime Agency.

The bigger context is that the FCA’s proposal is a review of the U.K.’s legislation and regulatory rules with regards to the European Union’s 5th Money Laundering Directive (5MLD), coming into the force this January. This aims to extend AML rules to specific firms in the crypto industry.

Integrating recommendations and measures from the Financial Action Task Force, U.K. has earlier amended its Anti-Money Laundering. This is, going beyond, which goes beyond 5MLD and activities with bitcoin offerings.

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