The Financial Conduct Authority (FCA) in the UK dedicated 30% of its financial crime specialists to overseeing crypto asset businesses in 2023. The FCA conducted risk assessments across sectors like retail banking, wealth management, and crypto-asset firms, identifying them as particularly susceptible to financial crime, especially money laundering activities. In its fight against financial crime, the FCA conducted 231 in-depth analyses and seven on-site visits, with 375 potential cases identified, including 95 linked to crypto assets. The regulator also extended a survey called REP CRIM to crypto businesses in April 2022 to gather information on their anti-money laundering controls.
Since Jan. 2020, the FCA has served as the AML watchdog for UK crypto businesses like exchanges and custodians, implementing a rigorous registration process that has led to many applications being withdrawn, rejected, or refused due to major shortcomings in anti-money laundering controls. The FCA’s March business plan emphasizes its commitment to consumer protection, a fair crypto market, and its focus on identifying and addressing crypto market abuse. The regulator also aims to promote a competitive UK financial sector globally.
The FCA has cracked down on misleading advertisements, removing a higher number of them in 2023 compared to the previous year. This increased scrutiny follows stricter advertising rules for high-risk investments implemented in July 2023, including guidelines for companies to disclose critical information about crypto products on various online platforms. The FCA issued new guidelines in March targeting financial promotions on social media platforms like memes, reels, and gaming streams to ensure fair and accurate information without any misleading content.
