The UK Treasury presented a report on the&nbsp;department’s&nbsp;work over the past two years, highlighting the risks associated with crypto. 
In the&nbsp;department’s&nbsp;latest <a href="https://assets.publishing.service.gov.uk/media/6630f2b4120ab0e20c4b9bdb/Final_annual_supervision_report_2022-23.pdf" target="_blank" rel="">report</a>, experts indicate that from 2022 to 2023, cryptocurrency,&nbsp;banking, and asset management&nbsp;created the&nbsp;greatest&nbsp;risks associated with money laundering. 
The document “Anti-money laundering and counter-terrorist financing” states that&nbsp;during the specified reporting period,&nbsp;the U.K. Financial Conduct Authority (<a href="https://crypto.news/tag/FCA/" target="_blank" rel="">FCA</a>) employed more than 50 financial crime specialists who examined the activities of 238 firms.&nbsp;Approximately one-third were involved&nbsp;in overseeing the activities of crypto firms. 
<blockquote class="wp-block-quote"> 
 “As part of the&nbsp;FCA’s&nbsp;risk-based approach, it applied a robust assessment process at the registration gateway for these&nbsp;businesses,&nbsp;and identified significant weaknesses in&nbsp;firms’&nbsp;controls, resulting in&nbsp;a large number of&nbsp;firms withdrawing their applications or being rejected or refused by the FCA.” <cite>UK Treasury report</cite>
</blockquote> 
Other watchdog groups outside the core FCA staff&nbsp;are reported&nbsp;to have opened&nbsp;375 more cases related to financial crime. The report says 95 investigations are related to cryptocurrencies. 
In October 2023, the FCA stated that crypto companies were <a href="https://crypto.news/impact-of-fcas-advertising-rules-on-the-uks-crypto-landscape/" target="_blank" rel="">noncompliant</a> with new marketing rules.&nbsp;The regulator issued 221&nbsp;non-compliance warnings and&nbsp;identified three common shortcomings among cryptocurrency companies.&nbsp;The agency also said it would take action against firms that do not comply. 
The announcement came&nbsp;shortly&nbsp;after the&nbsp;U.K.’s&nbsp;crypto firm marketing regime began enforcing the rules, which requires that such firms’ advertising be&nbsp;clear, fair, and not misleading. 
 You might also like: <a href="https://crypto.news/uk-publishes-fca-regulations-for-digital-securities-sandbox/" rel=""> UK publishes FCA regulations for digital securities sandbox </a>

UK Treasury warns of money laundering risks via cryptocurrency

crypto.news

Other articles published on May 1, 2024

Is This Cycle’s Bitcoin Bottom In? Analysts Forecast BTC Bounce Back

How Far Will the Bitcoin Price Decline Continue? Which Levels Will Be Seen? Three Experienced Ana...

Bitcoin Holds as US Economic Strategies Shift

Curve Finance Rewards Security Researcher $250,000 for Uncovering Critical Vulnerability

Will the Fed Adjust Interest Rates Soon?

3 Cryptocurrencies to Buy Before It’s Too Late: Polygon (MATIC), Bonk (BONK) and InQubeta (QUBE)

Join our free newsletter for daily crypto updates!