Source · Select Committees · Treasury Committee
Recommendation 46
46
Paragraph: 203
The Government should set out in the Economic Crime Plan its intention that all cryptoasset...
Recommendation
The Government should set out in the Economic Crime Plan its intention that all cryptoasset firms should be registered for anti-money laundering (AML) purposes. This has not yet been achieved. It is unacceptable that, having introduced AML regulations for cryptoasset firms in 2020, there are so many firms which have not yet been registered. Large numbers have not even applied for registration, and it is not clear what sanction they face.
Paragraph Reference:
203
Government Response
Not Addressed
HM Government
Not Addressed
We recognise the benefits that cryptoassets and their underlying technology may offer to financial services and will continue to encourage innovation and support competition in consumers interests. However, like in other areas, different types of cryptoasset activities and business models bring different risks of harm for consumers and markets. Furthermore, we have continued to warn consumers of the risks of investments advertising high returns based on cryptoassets, making clear that they should be prepared to lose all their money. Ultimately, the scope of our regulatory perimeter is a matter for the Government and we are working with them to inform thinking on any further regulatory or legislative actions that may be required to mitigate risks which are not covered by existing regulation.