Cryptocurrency exchanges and ICO token issuers will soon be caught by the Fifth EU Money Laundering Directive (5MLD). They will need to register with an authority such as the UK Financial Conduct Authority (FCA), and to set up new controls and maintain standards which could impact their business.
What’s more, it’s increasingly likely that very soon crypto asset firms will need to become fully authorised by the FCA, which will involve new requirements, higher costs and even more business impact.
Some firms are already FCA-regulated due to their business models involving e-money or payment services in fiat currencies, or being defined as regulated investment business. It’s not always as difficult as it sounds, and for some businesses there are benefits to being regulated.
Even so, the world of regulation is unfamiliar to many entrepreneurs who are founding crypto businesses. So it’s a good idea to seek specialist advice at an early stage to help you navigate these tricky processes.
Experience shows that the sooner you start thinking about this even before you legally need to, the lower the impact on your business.
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