Incoming UK FCA Chair Criticizes Crypto Sector Over Money Laundering

  • Alder warned MPs that cryptocurrency platforms enabled widespread money laundering.
  • Financial regulators in the UK are becoming more involved in the cryptocurrency sector.

Following the demise of the FTX exchange. The crypto sector across the globe has been dealt with a stringent hand in terms of regulations.

Incoming FCA chair Ashley Alder is the most recent person to comment on the sector. On December 14th, he warned MPs that cryptocurrency platforms enabled widespread money laundering and posed a “massively untoward risk.”

Stringent Approach Post FTX Fall

Financial regulators in the UK are becoming more involved in the cryptocurrency sector, prompting broad generalizations like this one. According to the Financial Times, Alder has warned that it would be difficult for cryptocurrency firms to function in the UK.

However, the United Kingdom and some prominent politicians continue to pursue the goal of making the country a regional crypto center. If the Financial Conduct Authority has its way. There would be very few places to use crypto and they will be regulated heavily.

Moreover, the FCA has been very liberal in rejecting applications for operating licenses; as a consequence, many IT companies have relocated to more business-friendly European countries. The UK’s financial watchdog issued a warning about FTX in September, saying the company was “targeting people in the UK” who would be hard-pressed to recoup their losses in a liquidity crisis.

It was also stated that FTX lacked the necessary permission to do business in the UK. Former CEO Sam Bankman-Fried previously stated his confidence that the firm complied with all applicable UK laws and regulations. The U.S. SEC and other financial regulators around the globe are planning for stringent regulations on the sector following the recent FTX fiasco.

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