In response to the FCA clamping down on cryptocurrency regulations, 64 crypto firms are reported to have withdrawn applications to operate in the UK.
Commenting on the problems regulators have with cryptocurrency and blockchain, and what the potential solution to it is,
Wayne Johnson, CEO, Encompass Corporation said:
“The emergence and adoption of cryptocurrency and blockchain technology has created a new scenario for regulators and fuelled global financial crime – essentially, we are facing a payments technology that transcends country borders, is not subject to rules and legislation associated with fiat systems of currency and, in turn, this has bred a plethora of issues pertaining to untraceable money laundering.
“The FCA crackdown on the cryptocurrency market will require many firms to review their infrastructure, operations, and capacity to deal with increasingly strict money laundering standards.
“Cryptocurrency is by no means the source of all financial crime in the modern era. Many firms that do decide to pursue this market ensure that they have right guidance and technology to detect and prevent money laundering built into their core platforms. This can be achieved with state-of-the-art and dynamic RegTech solutions, which can perform automated, cost-effective and extremely efficient KYC checks on new and existing customers – keeping both the FCA and crypto enthusiasts' content.”
