Ashley Elder, the incoming chair of the UK’s Financial Conduct Authority (FCA), believes crypto firms are “deliberately evasive” and facilitates money laundering, calling for more regulations.
During a virtual meeting, Elder told UK Treasury members on Wednesday that many crypto platforms are “deliberately promiscuous”, facilitate money laundering and pose “massive disproportionate risks”. report good From Financial Times.
Elder currently heads Hong Kong’s Securities and Futures Commission and is expected to become FCA chairman in February. His recent comments suggest that crypto companies hoping to build business in the UK will face an uphill battle.
Our experience to date [crypto] Platforms, whether FTX or others, is that they are deliberately evasive, they are one way by which money laundering is shaped,” he reportedly said, referring to the way crypto firms “bundle a whole set of activities.” do which are normally different. , , gives rise to large-scale untoward risks” such as conflict of interest.
“I think it [crypto] should be further regulated,” 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 among financial service providers.
The watchdog has traditionally taken a hard line 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 broad powers to regulate crypto markets, including monitoring the advertising, sales practices and management of crypto firms, overseeing the operations of companies, UK markets This includes restricting companies selling from overseas, and more. ,
The move comes after the unprecedented collapse of FTX, once the third-largest cryptocurrency exchange, which failed in early November, leaving retail customers with billions of dollars in losses.
The infamous founder of the exchange was Sam Bankman-Fried Arrested The Bahamas’ government announced the decision on Monday after US prosecutors formally filed criminal charges against them. The Southern District of New York, the Department of Justice and the SEC have brought various criminal charges against SBF.
As noted, Senator Elizabeth Warren has teamed up with Republican Senator Roger Marshall of Kansas introduce a bipartisan billl Which aims to crack down on money laundering loopholes in the crypto industry. Separately, the G20 countries Plan To build a policy consensus on cryptocurrencies to better regulate the asset class.
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