Author: Syedur Rahman 30 March 2021
Rahman Ravelli wrote about the approach taken to cryptocurrency regulation so far by the Financial Conduct Authority (FCA). The article was published by the Global Banking Regulation Review.
In their piece, they detail the role the FCA has had since 10 January 2020, as the anti-money laundering and counter-terrorist financing supervisor of UK cryptoasset businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Businesses that did not start operating until after 9 January 2020 had to register with the FCA, while existing businesses had to be both registered with the FCA and fully compliant with the 2017 Regulations. Yet delays in registering all companies led to the FCA announcing a temporary registration scheme in December 2020.
Two months prior to that, the FCA announced a ban on all retail cryptocurrency derivatives trading; which covered products such as options, futures and exchange-traded notes.
The article details the measures outlined in the FCA’s 108-page report into the fintech sector, which was published in February 2021. They also highlight areas where they believes the FCA’s actions appear to contradict its wish to make the UK a force in fintech.
The current systems in place to regulate cryptocurrency are, she argues, both out of date and unsuitable for the task they are being asked to do.
The article featured in Global Banking Regulation Review.
Syedur Rahman is known for his in-depth experience of serious fraud, white-collar crime and serious crime cases, as well as his expertise in worldwide asset tracing and recovery, international arbitration, civil recovery, cryptocurrency and high-stakes commercial disputes.