Cryptocurrency regulation has been a sore topic for many. Regulators all over the world have been actively debating the extent of cryptocurrency regulation. UK’s regulatory watchdog, the Financial Conduct Authority, has put forward its concerns regarding the lax regulation in the country, once again.
The Financial Conduct Authority has stated that a huge number of crypto firms do not meet the anti-money laundering requirements of the country. Cryptocurrency firms have to register with the FCA; however, only five firms have fully registered with the FCA as of yet. While others operate on a temporary license. Ninety firms are operating with a temporary license currently which are deemed to be not fit in terms of anti-money laundering. The inability to meet requirements has also resulted in a lot of withdrawal applications from businesses – 51 to be precise. The FCA has extended its temporary registration regime to March 31, 2022, in order to facilitate the crypto firms.
The advent of blockchain technology did not raise many red flags initially. However, after the bull run of 2021, it became clear that the technology is here to stay with mass adoption on the radar. The blockchain technology has been becoming more relevant with every passing day. There have been many new developments and innovations in the cryptocurrency sphere. But with every new innovation, comes the cons as well. The decentralized nature of cryptocurrencies has led to a spike in money laundering, tax evasion, and other illegal activities.
The problems are becoming rampant as cryptocurrencies move towards mass-scale adoption. Some regulators like the Australian regulators have had soft stances while others like South Koreans have launched a crackdown on the crypto sphere. While the regulatory future of cryptocurrencies is uncertain, regulators are becoming increasingly active on the front.