The UK may tighten crypto market monitoring facing pressure from the Financial Action Task Force.
The authority released the December report citing that these measures are required for prevention of anti-money laundering and counter-terrorism financing actions. It was discovered during the evaluation that local system for reporting suspicious activities must be revised and updated.
"Virtual currency exchange providers are not yet covered by AML/CFT requirements. This is an emerging risk and there is not yet evidence to suggest that broad scale ML/TF is occurring in the UK through this relatively small sector," reads the document.
Notably, FATF added that some players (real estate agents and traders) do not fully realize the risks in terms of the money laundering via cryptos as well as their role in this process.
For now, the country is facing the change of the regulatory regimes in the national cryptocurrency sector. Specifically, some initiatives faced critics – some insiders noted in November that new rules can lead to a ban on some institutional tools like bitcoin futures.
The authority stated that the UK needs new modernized and expanded guidelines for actions against money laundering and terrorist financing activities. Moreover, the country should also boost supervision over the crypto exchangers.
After the evaluation, UK authorities detected and analyzed risks and are working on wider AMK and CTF measures in the crypto industry.