50 crypto-trading companies accused of money-laundering are in danger of shutting down

[ad_1]

Taking advantage of the secure nature of Bitcoin and other cryptocurrencies, this asset class is used as a form of illegal money laundering in many places.

Cryptocurrencies have long been questioned for their use in illegal activities such as money laundering by undisclosed transaction takers. Many officials also warn about the speculative nature of this asset class.

According to The Guardian, recently, the UK’s financial control agency (FCA) issued a statement: “A large number of businesses do not meet the standards required by anti-money laundering regulations, leading to a large number of businesses. businesses withdraw applications with an unprecedented increase”

Most of the companies mentioned above received warnings for violations of regulations on anti-money laundering, preventing criminals and terrorist groups from making money, often through complex networks of financial channels.

Accordingly, these companies are required to immediately cease doing business until they fully meet the criteria and are recorded by the supervisory authority on the official registration list. Conversely, companies that refuse this request will face penalties from the FCA.

A number of regulatory agencies around the world also offer solutions to deal with electronic assets related to money laundering and black market transactions. In China, regulators prohibit banks and payment companies from providing customers with any crypto-related services or having a warning about the risks associated with trading electronic assets.

Former FCA CEO Andrew Bailey also released a statement last month stating that cryptocurrencies “have no intrinsic value.” “Buy them only if you’re willing to lose your entire investment,” he added.

In the UK, crypto-asset investors will not be able to get their money back if companies go bankrupt. Even so, banks like Goldman Sachs and Standard Chartered are still launching their own cryptocurrency exchanges to capitalize on the rapid growth of this market.

According to The Guardian, the bitcoin price has dropped 40% since hitting an all-time high of more than $64,000 in mid-April and is back close to $33,000 today.

To date, only 5 crypto companies have officially registered with the FCA. In addition, there are 90 other companies applying that are sitting on the list of temporary registration regimes.

Meanwhile, another 51 units have withdrawn their applications. However, companies that are not registered under the FCA will not be forced to close. Although the temporary program registration deadline has passed, other institutions will still have the opportunity to re-apply.