Cryptocurrency exchanges and ICO/STO 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, a Crypto Taskforce consisting of representatives of HM Treasury, the FCA and the Bank of England has been set up to consider Crypto Assets and DLT and regulation. As a first step, they have taken steps to clarify the regulatory perimeter and to consult about further regulation.
Some firms are already FCA-regulated due to their business models involving e-money or payment services in fiat currencies, or being defined as a 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. See how our dedicated cryptocurrency team can help.
Experience shows that the sooner you start thinking about this even before you legally need to, the lower the impact on your business.