The National Audit Office stressed it took almost three years for the UK FCA to solve illegal activities in crypto ATMs nationwide.
Concerns have been raised by the National Audit Office (NAO) in the U.K. regarding the Financial Conduct Authority’s (FCA’s) efficacy in controlling the cryptocurrency industry. According to the latest report called ‘Financial services regulation: adapting to change,’ the NAO asserts that the FCA is sluggish in responding and taking action against illegal activities in the crypto sector.
National Audit Office Blames FCA for Delaying Cracking Whip on Illegal Crypto ATMs
The National Audit Office claimed that the FCA took nearly three years to act against unauthorised crypto ATM operators. On July 11, a digital media resource revealed that the Financial Conduct Authority had closed down 26 crypto ATMs as part of a harmonised investigation.
In the meantime, the watchdog claimed that the Financial Conduct Authority has instructed crypto-asset companies to adhere to anti-money laundering guidelines since the start of 2020.
Besides, it has started supervision work, which includes engagements with unregistered companies. However, it did not implement enforcement action against unlicensed crypto ATM operators until February.
Audit Office Urges FCA to Engage Crypto-Experienced Personnel
The NAO says the lack of specialised personnel caused a delay in registering crypto companies seeking FCA’s approval. For instance, the report declared that the lack of crypto skills resulted in the conduct regulator taking longer to register crypto asset companies under money laundering laws.
On January 27, it was reported that since implementing the rules at the start of 2020, the FCA has sanctioned 41 of the 300 crypto company applications seeking regulatory consent. This happens following the FCA’s recently unveiled guidance material to aid crypto companies in comprehending the new crypto promotion regulations that recently became functional.
FCA Unveils Non-Handbook Guidelines for Crypto Promotion
On November 2, it was revealed that the Financial Conduct Authority introduced a ‘completed non-handbook guidance’ for adherence to the new regulations. Explicitly, these regulations concern how crypto companies can promote to clients.
The Financial Conduct Authority listed problems, for instance, crypto companies making assertions concerning the ease of utilising crypto without indicating the associated risks and risk warnings that lack adequate visibility in small fonts.