Global regulators have been protesting against cryptocurrencies for the past month, and their savage condemnations are getting more extreme.
The latest to make one of these ridiculous accusations is the incoming FCA chairwoman, Ashley Alder. On Dec. 14, she told politicians that crypto platforms were “deliberately evasive,” facilitated money laundering on a large scale, and created “hugely adverse risks.”
The big sweep comes as the financial regulator assumes greater control over the UK crypto industry. According to the Financial Times, Alder said that crypto companies wanting to operate in Britain will face an uphill struggle.
FCA regulatory anger
However, the UK and several high-profile politicians still have ambitions to become a regional crypto hub. The FCA, if it has its way, would favor a strictly controlled and limited crypto asset environment.
Alder, who currently heads the Hong Kong Securities and Futures Commission, said that cryptocurrencies should be more regulated, adding:
“Our experience to date [crypto] platforms, whether it be FTX or others, is that they are deliberately evasive, they are a method by which money laundering happens in size.”
He then accused crypto companies of “bundling a whole set of activities that are normally segregated,” which increases the risks.
The FCA has been very lenient with its operating licences, rejecting 80% of applications, resulting in an exodus of tech firms to friendlier jurisdictions in Europe.
In September, the UK’s financial watchdog issued a warning about FTX, claiming it was “targeting people in the UK” who were unlikely to get their money back in the event of a liquidity crisis.
It added that FTX did not have the correct license to operate in the UK. Then chief executive Sam Bankman-Fried said he believed the company was in compliance with UK regulators.
Anti-cryptocurrency Senator Elizabeth Warren has also been on the warpath again. His latest cryptocurrency bill aims to eradicate all financial privacy in the US by treating blockchain software like nodes and validators as “money service businesses.”
Withdrawal from crypto markets
Cryptocurrency markets are in the red again as another week comes to a close. Total market capitalization is down a percentage or so on the day to $886 billion as of this writing.
Consolidation has continued since the FTX crash in early November, and analysts have forecast a quiet period for Bitcoin and its brethren in the coming months.
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This post UK FCA Claims Crypto Platforms Facilitate Money Laundering
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