August 20, 2020 | AtoZ Markets – The U.S. crypto exchange Gemini has registered its U.K. branch with the Financial Conduct Authority to comply with the country’s recent mandate that crypto firms report their activity. FCA approved its first exchange under the new regulation, Archax.
The U.K. regulators amended the anti-money laundering rules earlier this year with the European Union’s fifth AML Directive (AMLD5) that requires crypto businesses in the U.K. to register with the FCA before performing any crypto-asset activity.
Crypto businesses have until January 10, 2021, to register
According to regulators, existing crypto businesses have until January 10, 2021, to register. Gemini’s U.K. arm, Gemini Europe Limited, appeared on the FCA register this week. However, an effective status date for the firm’s registration has not been added.
Alongside Gemini was Archax, whose approval status took effect this week according to the register. Archax is an upcoming London-based exchange. Earlier it was reported that Gemini Trust Co. had hired Eventus Systems Inc. to provide anti-market manipulation tools. Eventus also works with other U.S.-based crypto exchanges like Coinbase and ErisX. Currently, Archax and Gemini are the only two firms on the FCA’s list of registered crypto-asset firms.
European countries enforce new crypto regulations
European countries are enforcing crypto regulations based on the FATF guidelines. European Union’s fifth AML Directive is being carried out in European countries. As reported earlier, Ireland’s cabinet is all set to introduce new anti-money laundering (AML) laws. The legislation will reportedly focus on the usage of cryptocurrencies in criminal financial activities such as terrorist financing and money laundering.
However, the new crypto laws could pose further difficulties for crypto market participants in Ireland, especially with respect to the cost of compliance. The new crypto regulations require crypto businesses to comply with regulators and even provide information about their customers to track illicit activities.
Think we missed something? Let us know in the comment section below.