FCA Proposes Updated Crypto Crime Guidance on Wallet Checks and Blockchain Analytics

The FCA is consulting on updated financial crime guidance for crypto businesses, focusing on customer checks, blockchain analytics, and the Travel Rule. Responses are due December 24, and the guide will not create new rules. The October 23 consultation proposes changes to the Financial Crime Guide, addressing cryptoassets, fraud, sanctions, data security, and money laundering. It applies to cryptoasset businesses and firms under the Money Laundering Regulations. The focus is on how firms assess customers and transactions, and how they respond to changing risks. Blockchain records can aid investigations but do not determine the credibility of customer explanations or the need for further scrutiny. The consultation paper includes examples of good and poor practices for due diligence, onboarding, and transaction monitoring, specifically regarding blockchain analytics and the Travel Rule. It emphasizes that governance must evolve with business growth. Proposed changes include distinguishing obligations under proceeds-of-crime legislation from terrorism legislation. The FCA clarifies that the guide imposes no new requirements and aims to help firms understand supervisory expectations. The consultation closes on December 24, after which feedback and the final text will be published. The wider cryptoasset framework is expected to begin on October 25, 2027, with applications for authorization already open.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.