The UK Treasury has submitted a report on the department’s work over the past two years highlighting crypto-related risks.
In the Ministry’s latest report, experts state that the biggest risks related to money laundering from 2022 to 2023 are posed by cryptocurrency, banking and asset management.
The document “Prevention of money laundering and terrorist financing” states that during the specified reporting period, the UK Financial Conduct Authority (FCA) employed more than 50 financial crime experts who examined the activities of 238 firms. About a third were engaged in overseeing the activities of crypto firms.
“As part of the FCA’s risk-based approach, it implemented a robust assessment process at the point of registration for these businesses and identified significant weaknesses in the firms’ controls, which resulted in a large number of firms withdrawing their applications or having their applications rejected or denied at the FCA. “
UK Treasury report
Other watchdog groups outside core FCA staff reportedly opened a further 375 cases related to financial crime. The report states that 95 investigations were related to cryptocurrencies.
In October 2023, the FCA stated that crypto companies did not comply with new marketing rules. The regulator issued 221 non-compliance alerts and identified three widespread deficiencies among cryptocurrency companies. The agency also said it would take action against companies that do not comply with the rules.
The announcement comes shortly after the UK’s crypto company marketing regime began implementing rules requiring advertisements from such firms to be clear, fair and not misleading.