FCA held the meeting on increasing control of cryptocurrencies in the UK supervisory authority
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The UK Financial Conduct Authority (FCA) has unveiled future regulatory innovations at a preliminary discussion with participants of the cryptocurrency market. By early 2020, the UK authorities intend to finalize the standards of conduct for crypto companies.
In the end of July, a meeting on the implementation of the EU’s 5th Money Laundering Directive (5MLD) for virtual assets was held at the UK Financial Conduct Authority (FCA). The meeting was attended by employees of the UK regulator and representatives of cryptocurrency companies, providers of crypto wallets, exchanges and software developers for the cryptocurrency market.
According to the announced plans, FCA intends to prepare and publish recommendations for cryptocurrency companies by September of this year concerning the supervision of the implementation of the 5th Money Laundering Directive and fees. In December 2019, FCA should issue a final version of the supervision recommendations and rules for fees. After January 10, 2020, crypto companies operating in the field of payments, storage and exchange of cryptocurrencies will have to undergo two registration procedures to work with cryptocurrencies in the legal environment and to confirm the compliance to the new rules stand against the money laundering which the 5th Directive contains.
The meeting participants from crypto companies have positively assessed the results of the discussion with the UK conduct authority. As described by the UK-registered company Bitlish, which is a crypto exchange and an operator of crypto wallet, a close dialogue between the authorities and industry institutions has managed to find the way to the optimal regulatory regime of the new cryptocurrency sphere.The EU’s 5th Money Laundering Directive (5MLD) came into force on July 9, 2018. According to the new directive, the scope of influence of financial monitoring should extend to virtual currency exchange service providers and e-wallet providers. National financial investigation authorities should be able to obtain information that will allow linking virtual currency addresses with the identity of the owner. In addition, the directive states that national registries are to disclose the beneficiaries of companies registered in EU member states and prohibits financial institutions from opening and maintaining anonymous accounts and cells. EU Member States are required to implement the amended rules in their national laws until January 20, 2020 at the latest.