The Financial Action Task Force (FATF) has published a report evaluating the UK’s regulatory regime to effectively combat money laundering and terrorist financing. The report recommends that the UK “progress plans to extend AML/CFT requirements and related supervision to virtual currency exchange providers.” The report stresses however that “this is an emerging risk and there is not yet evidence to suggest that broad scale ML/TF is occurring in the UK through this relatively small sector.” In any case, the UK has already made clear that it intends to regulate virtual currency exchange providers by transposing the EU Fifth Anti-Money Laundering Directive and further broadening its scope. (See October Crypto-asset Taskforce Report

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