The concept of cryptocurrency being nothing more than a “fad” is rapidly being dissolved. Regulators and lawmakers across the globe are taking the issue of a digital currency world more seriously, and no one could legitimately argue now that, in the very near future, crypto will be a regular part of a monetary system. What role it will play may still be open for debate, but a recent policy change on the part of U.K.’s financial regulator, the Financial Conduct Authority (FCA), shows how far things have come in just a few short years, and how the crypto space is continuing to evolve. Going forward, anti-money-laundering (AML) laws that have been in place for conventional currency businesses will be applicable to all companies working in the crypto space.
This is a huge step forward for crypto industry, with the FCA leading the charge to bring digital currency to run parallel to existing fiat alternatives. The policy reform will give the regulator the ability to more closely monitor activity occurring in the crypto realm, which is going to help reduce the AML risk and continue to clean up the industry. It is also a great way to ensure better integrity and transparency among those businesses involved in crypto as a payments solution.
The new initiative will require crypto businesses to submit AML reports, just like conventional fiat currency businesses do, and show how they are working to curb the use of crypto for money laundering or other nefarious purposes. The FCA is only just now exploring the option of expanding its reach to the crypto sector; however, there is little doubt that it will succeed, given the greater emphasis that continues to be placed on the monitoring and adoption of digital currencies as a payments alternative.
One goal of the policy, should it be implemented, is to give the FCA substantial amounts of data pertaining to crypto operations, which will lead to even more guidance and control, traits that will help the industry continue to rise. Overall, the expansion of the AML policy to the crypto sector will see the regulator receive data on as many as 4,500 crypto entities annually, which will go a long way toward building a more robust, legitimate industry.
The implications for many business sectors are obvious, and the gaming industry will be able to receive a huge boost, as well. Gambling and crypto often share some of the same features, in that they’re expected to be more transparent and better regulated, and this is exactly what the FCA’s initiative is able to provide. The gambling industry has always been attracted to crypto because of the ease with which deposits and withdrawals are made, and bringing greater regulatory oversight to the crypto space will only allow the two to continue to work more closely together, while giving gamblers a transparent, reliable platform.