London — Cryptocurrency exchange UKEX.com has registered an application with the UK’s Financial Conduct Authority (FCA), in a move set to bolster its reputation as a compliant digital assets platform.
The UK has no explicit cryptocurrency legislation – cryptocurrencies are not deemed legal tender – but now exchanges must adhere to specific regulatory guidelines and need to be registered with the FCA.
UKEX.com has made the application ahead of next week’s June 30th deadline through its parent company UKDE. Based in the City-of-London, the UKEX.com parent has been authorised as an EMD agent, (FRN: 902789) and EMI distributor (FRN: 900025) by the Financial Conduct Authority.
The change in approach to crypto assets in the UK comes as the European Union’s Fifth Money Laundering Directive (MLD5) is transposed into UK domestic law. The FCA is now the AML/CTF supervisor for firms carrying on crypto-asset activities such as crypto exchanges and wallet services.
Existing digital assets firms must be fully registered with the FCA by January 10th, 2021. All firms who miss the application deadline will be required to cease both taking on new customers and servicing existing customers. Firms that continue to trade without applying will be committing a criminal offense.
“UKEX welcomes the regulatory guidelines and registration process from the Financial Conduct Authority (FCA),” said Mr. Junsong Wu, CEO of UKDE, the blockchain company behind UKEX.com.
“The FCA requirements bring an increased workload and responsibility for exchange businesses in the UK, but it also signifies a growing regulatory control and security in the space which UKEX.com and our customers embrace,” he said.
The UK’s conduct regulator is not simply requesting a firm’s AML policy. The agency has sought each company’s regulatory business plan, financial forecasts, structural organisation, systems workflow, governance arrangements and internal control mechanisms.
UKEX.com has worked diligently to partner with leading suppliers of KYC, AML and transaction monitoring processors.
The exchange boasts integrated document ID & facial biometrics verification API which allows UKEX.com to draw a clear customer profile, while also partnering with a global proprietary database delivering real-time and on-going AML screening.
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