UK Regulator Seeks Specialist to Tackle EU Crypto Rules

UK Regulator Seeks Specialist to Tackle EU Crypto Rules

The UK’s market regulator Financial Conduct Authority (FCA) seeks specialist to tackle EU crypto rules.

The expert will tackle EU crypto rules; mainly the 5th Anti-Money Laundering Directive (5AMLD) which came into force on 10 January.

The new regulation is aimed at bringing more transparency to financial transactions and combat money laundering and terrorist financing across Europe.

Thus, the 5ALMD will give European financial regulators increased access to information via centralized bank account registers.

According to a 5ALMD fact sheet, it will also address terrorist financing risks related to anonymous use of digital currencies.

Although the UK has officially left the EU on January 31, the government still has to comply with the EU cryptocurrency regulations.

Earlier, the market watchdog announced that it will start overseeing local firms’ compliance with the Anti-Money Laundering regulations. In addition, the FCA plans to issue strict laws for crypto companies.

With the rapid spread of cryptocurrency and blockchain technology in all fields, the need for regulation is an ever-increasing necessity. However, the current regulation efforts may present too much of a constraint that may hinder growth for the still new sector.

EU crypto firms seek to meet rules

Cryptolydian earlier reported that crypto companies in the EU are struggling to meet the guidelines set by the new law. Thus, the firms should register with local authorities and obtain information about the source of funds from their users. Extensive practices like know-your-customer (KYC) and anti-money laundering (AML) are encouraging a number of firms to shut down their operations in the EU and move overseas.

Netherlands-based cryptocurrency platform Deribit has been relocated to Panama due to strict EU anti-money laundering regulations.

The regulations may drive other exchanges from Europe.

Previously, Reporter Larry Cermak said on his twitter account that Malta-based cryptocurrency exchanges Binance and OKex will also be ordered to comply with the EU regulations or leave.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.