HM Treasury have confirmed that it will now move ahead with the implementation of the long awaited in the UK. TruNarrative’s Business Development Director shares his thoughts.
Acknowledging that this requirement will increase the cost of compliance, they believe this will be outweighed by the benefits to both the sector and the economy from the reduction of the associated risks of money laundering and terrorism financing with cryptoassets transactions.
In summary, the new rules state that:
- It will only apply to intermediaries that are either cryptoasset exchange providers or custodian wallet providers.
- A new threshold for cryptoassets transactions that aligns with the FATF’s recommended threshold of EUR 1,000 will be implemented (soon to be replicated for the UK with a threshold of GBP 1,000).
- Cryptoasset businesses will be expected to collect beneficiary and originator information on unhosted wallets for transactions that are identified as posing an elevated risk of illicit finance.
Though crypto firms have been afforded a 12-month grace period before these new rules take effect, it strongly reiterates the need for adaptable and highly configurable transaction monitoring capabilities, to ensure that all transactions falling under the new thresholds are detected; as well as being able to identify behavioural changes that could indicate an elevated risk of illicit finance.
Our ‘zero-code’ approach to configuring bespoke transaction monitoring rules allows our cryptoasset customers to get ahead of upcoming regulations, whilst also remaining agile within the global market they operate in.
Please reach out if you’d like to discuss how we can support you with the new regulations and to better mitigate the risk of illicit funds moving through your platforms.
