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Jul, 2019

United Kingdom includes cryptocurrencies in Economic Criminal Activities Plan

A few days after Boris Johnson’s election as UK’s Prime Minister, Finance Minister Philip Hammond, presents in the Parliament the Economic Crimes Plan for 2019 -2022. The Plan includes cryptocurrencies and the prevention of their use in illegal activities.


The Plan has become a reality in cooperation with large companies and organizations with important role in UK’s economic life. This cooperation will help to reduce cases of fraud, money laundering, bribery and political corruption.


The cryptocurrencies are included in 2 different subcategories in the proposed regulations: anti – money laundering and the financing of terrorist groups. Cryptocurrencies have been accused in the past for being used for transfer of illegal activities’ profits and for financing terror activities.


The frameworks for crypto exchanges for Customer Identification have been much stricter and there are sufficient data for every customer that want to transfer cryptocurrencies through the exchanges. There are also security gaps in less known exchanges or hand by hand through printed wallet.


The Plan sets FCA (Financial Conduct Authority) as responsible for the implementation of the regulations and the penalties in case of violations. It is worth noting that FCA proposes the ban of crypto futures from individual investors but it also granted the first operating license for Prime Factor Capital, the first crypto – focused hedge fund in London.