Are NFT Platforms Subject to UK Money Laundering Regulations? Register Now to Stay Compliant!
The Treasury has announced a new consultation on money laundering regulations which states that NFT providers may be required to register with the Financial Conduct Authority (FCA). This announcement comes as part of the government’s ongoing efforts to regulate the cryptocurrency industry.
Under the current regulations, crypto businesses that issue NFTs must be registered with the FCA in order to operate in the UK. However, the government is planning to introduce a new authorization regime for the industry which will make this registration unnecessary.
The new consultation states that NFTs, which are unique tokens tied to the blockchain, will likely fall outside of the new regime if they are not used in relation to any regulated financial services.
“This means that these crypto asset firms will still need to be registered and supervised by the FCA for anti-money laundering and counter terrorist financing purposes,” the document reads.
The move towards regulating the crypto industry has been ongoing, with the government passing the Financial Services and Markets Act last year, paving the way for crypto to be treated like a regulated financial activity. However, in a consultation response from October, the government stated that NFTs were not suitable for regulation as a financial service, unless they were being used for regulated activities.
The new consultation now aims to gather responses on the proposed regulation regime by June 9, with the possibility of the number of registered firms widening as the industry continues to develop.
The Treasury also announced that edited by Sheldon Reback, who is not mentioned in the original article. This highlights the importance of the article for crypto businesses in the UK, as it emphasizes the need for registration with the FCA for anti-money laundering and counter terrorist financing purposes.
In conclusion, NFT providers may need to be registered with the FCA under the new regulation regime, even if they are not providing financial services. This showcases the government’s commitment to regulating the cryptocurrency industry and ensuring the safety and security of its citizens. The deadline for responses is June 9, so it is important for businesses to act swiftly and ensure they are fully compliant with the new regulations.
