Regulation

Hundreds of crypto firms fail FCA money laundering test

Only 35 of the 273 applications to the UK watchdog under the Fifth Anti-Money Laundering Directive have made it through

The FCA is taking a tough stance on who it allows to operate in the UK
The FCA is taking a tough stance on who it allows to operate in the UK Photo: Getty Images

Just 13% of crypto firms that applied for authorisation under the Financial Conduct Authority’s money laundering rules over the past two years have been successful.

The regulator has received a flood of applications under the Fifth Anti-Money Laundering Directive — 5MLD — introduced in January 2020, bringing crypto service providers into the rules requiring additional checks on customers and dirty money risks to be monitored.

WSJ Logo