FCA's Actions to The Crypto Market Security

At the end of March the United Kingdoms financial watchdog – the FCA – has announced that crypto-involved companies in the UK are now obligated to submit financial crimes-related information in the form of yearly reports.

Some may think that this kind of reporting could be considered a step back from the freedoms that the crypto industry promised at the beginning of its inception. However, in actuality, this decision is likely to lead to many good things for the industry in the long term.

One of the major reasons why cryptocurrencies have been slow on the pickup by mainstream companies and companies outside of the crypto industry until now is the lack of trust and the fear of crypto funds being associated with criminals and scams. It is no secret that the crypto industry has been the victim of many hacks, thefts and other cybercrimes in the past several years.

All the more reason why this recent decision by the FCA is so important. Gaining a better understanding of how criminals operate and use crypto assets will ensure companies in this sector provide the best possible security for their clients. They will be able to keep the funds entrusted to them safe while at the same time fostering greater trust with the general public.

And on the regulators side, this measure will help gain a clearer picture of the market and its vulnerabilities, opening avenues for the development of regulations meant to target these weaker spots specifically.

All of this is necessary for the progressive development of the crypto industry and its inclusion into the greater financial services ecosystem.

With the growing presence of major non-crypto players like Visa and PayPal, it doesnt come as a surprise that security is becoming a much more important matter now.

We have been observing a trend where more and more crypto companies are hastening the implementation of KYC/AML measures. At the same time, clients also begin to show more patience for such matters and willingness to undergo proper KYC procedures. Our own internal data showed a 65% increase in willingness to pass verification processes, compared to how things were before the recent bull market.

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