On 27 July 2020, the Joint Money Laundering Steering Group (JMLSG), which comprises UK financial services industry trade bodies, published new sectoral guidance for cryptoasset exchange providers and custodian wallet providers regarding compliance with money laundering obligations. The Guidance provides an outline of the money laundering risks posed by cryptoassets and how cryptoasset firms can mitigate such risks. Money-Laundering Risks of Cryptoassets A 2020 study by the UK’s National Crime Agency reported that UK based…
The Council of the EU and the European Commission have published a joint statement on stablecoins. As expected this states that no global “stablecoin” arrangement should operate in the EU until “the legal, regulatory and oversight challenges and risks have been adequately identified and addressed.” While the statement recognizes that “stablecoins” may present opportunities in terms of cheap and fast payments, for example, with cross-border payments, it lists a multitude of “challenges and risks”. These…
Implementation of the EU’s Fifth Money Laundering Directive on 10 January 2020 is now fast approaching. To the Financial Conduct Authority’s long list of responsibilities has been added the role of anti-money laundering (AML) supervisor of UK crypto-asset businesses. With this in mind, the FCA has published a new webpage setting out key information for businesses. This includes the crypto-asset activities likely to fall within scope although these will not be definitely known until HM Treasury publishes…
The UK’s Financial Conduct Authority has published draft guidance for market players in the developing cryptoassets sector (see CP19/3). This follows a report published last autumn by the UK’s Cryptoasset Taskforce (consisting of the FCA, PRA and Treasury) that explores the UK’s approach to cryptoassets and distributed ledger technology. The FCA has been a relatively late mover in producing practical guidance on crypto compared to other regulators internationally, but was it worth the wait? The…