Crypto Currencies

Lord Browne of Ladyton Excerpts

Monday 28th February 2022 Lords Chamber

[Baroness Penn (Con)]

My Lords, we are taking action to manage the most pressing risks from crypto assets. That includes including crypto assets in the most robust standards for money laundering and countering terrorist financing, and moving to regulate crypto asset promotions to ensure that they are held to high standards for fairness, clarity and accuracy.

[Lord Browne of Ladyton (Lab)]

My Lords, crypto assets are used extensively for money laundering, as the Minister implied and the noble Lord, Lord Young, made clear. Since January 2020, crypto asset businesses in this country have had to comply with money laundering regulations and to be registered with the Financial Conduct Authority. Helpfully, the FCA has a list of approximately 30 businesses that are compliant and registered, but for some bizarre reason it also has a list of 200 or more companies that are non-compliant and not registered. Whatever the original reason for that, it seems to me to be a directory for kleptocrats, drug dealers and criminals to access some business that will not comply with the regulations. What are the Government doing about it, and about these businesses?

[Baroness Penn (Con)]

My Lords, if I understand the noble Lord correctly, he may be referring to the transition arrangements that were put in place following the inclusion of crypto assets into the anti-money laundering regime. That transition regime is due to expire on 31 March 2022, when all companies will need to be registered.