The UK regulator FCA has informed earlier that any UK business conducting specific cryptoasset activities falls within scope of the regulations and will need to comply with the regulator’s requirements.
Cryptoasset businesses are required to identify and assess the risks of money laundering and terrorist financing which their business is subject to. The companies also need to have policies, systems and controls to mitigate the risk of the business being used for the purposes of money laundering or terrorist financing.
Cryptoasset businesses will also have to appoint an individual, better a Board member or senior management, to be responsible for compliance with the MLRs, as well as to undertake customer due diligence when entering into a business relationship or occasional transactions.
The companies are also required to ensure that all customer’s transactions are consistent with the business’s knowledge of the customer and their business and risk profile.
UK businesses undertaking cryptoasset must register with the FCA before conducting businesses – registration forms are available on Connect.
Existing businesses already conducting cryptoasset activity before 10 January 2020 may continue their business but will need to ensure their compliance with the MLRs with immediate effect.
All existing businesses undertaking cryptoasset activities must be registered by January 2021.