Crypto Companies Enable Money Laundering, Warns Incoming FCA chair – Regulation Coming Soon?
Ashley Alder, the incoming chair of the UK’s Financial Conduct Authority (FCA), believes crypto firms are “deliberately evasive” and facilitate money laundering, asking for more regulations.
During a virtual meeting, Alder told UK Treasury members on Wednesday that many crypto platforms are “deliberately evasive,” facilitate money laundering and create “massively untoward risk,” according to a report from Financial Times.
Alder currently spearheads Hong Kong’s Securities & Futures Commission and is expected to become FCA chair in February. His most recent comments suggest that crypto companies hoping to build businesses in the UK will face an uphill battle.
“Our experience to date of [crypto] platforms, whether FTX or others, is that they are deliberately evasive, they are a method by which money laundering happens in size,” he reportedly said, adding that the way crypto firms “bundle a whole set of activities which are normally segregated . . . gives rise to massively untoward risk” such as conflict of interest.
“I think it [crypto] should be regulated further,” he said.
The FCA is a financial regulatory body in the United Kingdom, tasked with regulating the financial services industry in order to protect consumers, keep the industry stable, and promote healthy competition between financial service providers.
The watchdog has traditionally taken a harsh stance on crypto companies, rejecting 80% of crypto firms applying to join the watchdog’s register of businesses that have passed its anti-money laundering checks.
Meanwhile, the British government is finalizing plans to give the watchdog broader powers to regulate the crypto markets, including overseeing crypto firms’ advertising, sales practices, and management, monitoring
Read more on cryptonews.com
