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British Financial Regulator Seeks Crypto Professional for AMLD5 Enforcement

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Financial Conduct Authority
Financial Conduct Authority

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The Financial Conduct Authority (FCA), the financial watchdog for the United Kingdom, has opened a position for a cryptocurrency expert as the agency looks to navigate the murky waters of regulation going forward. 

According to a job posting published on LinkedIn on February 6, the financial regulator is looking for an Intelligence Associate who has extensive expertise with cryptocurrencies and who will help the agency to classify digital assets concerning the Fifth Anti-Money Laundering Directive (AMLD5) from the European Union. 

Managing AMLD5 with an Improper Regulatory Framework 

The regulations, which were officially enforced on January 10, have posed a bit of a threat to cryptocurrency businesses that operate within the European Union. It imposes stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements on them. Although the Boris Johnson administration was able to get Brexit done and the U.K. formally exited the European economic bloc last week, the nation is still obligated to comply with the AMLD5 and its precepts.

So, the agency is looking to hire someone with progressive experience that will be able to help with cryptocurrency clarifications and provide smooth enforcement of the regulations. As the job posting describes, the ideal candidate will be able to assist with intelligence support for the agency’s intelligence team, while also processing applications for companies looking to enter the U.S.’s financial services industry.

Like most countries, cryptocurrency regulations in the United Kingdom have largely stalled for the past few years. There was a lot of hope that things would change in 2019, and things started that way. However, apart from a few tax guidelines shared by her Majesty’s Revenue & Customs (HMRC) as regards the tax classifications of cryptocurrency, not much progress has been made on that matter. 

Last week, there was a rumor that the FCA could place a blanket ban on cryptocurrency derivatives trading, as top officials had explained that scam operations had milked investors out of billions of dollars. So, it’s safe to say that the issue of cryptocurrency regulation is already as testy as it is. Now that the AMLD5 has been thrown into the mix, things will get much more challenging.

British Crypto Firms Feeling AMLD5 Effects Already 

AMLD5 has started to affect companies already. Last December, Bottle Pay– a crypto payment processor based in the country- announced that it would be shutting down its services as AMLD5 enforcement had made it impossible for the firm to operate. In a bombshell announcement, the service, which makes it possible for users to send Bitcoin from their social media accounts, explained that it would immediately be returning users’ funds. 

Since it was registered in the U.K. as a Bitcoin wallet service provider, the firm explained that the information that it would have had to provide to regulators would simply “alter the current user experience so radically, and so negatively, that we are not willing to force this onto our community.” Seeing no other way out, the company closed shop.

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