Cryptocurrencies

Lord Browne of Ladyton Excerpts

Wednesday 2nd March 2022 Lords Chamber

[Lord Browne of Ladyton (Lab)]

My Lords, I cannot resist the temptation to engage a Minister on this issue for the third day in a row. From January 2020 firms carrying out crypto asset activities in the UK have had to comply with the money laundering, terrorist financing and transfer of funds regulations and to register with the FCA. The FCA helpfully publish a list of 220 or more businesses that appear to be, in its words,

“carrying on crypto asset activity that is not registered with (the FCA)”

for anti-money laundering purposes. I have given the Minister notice of my question, which is: why are we allowing—if we are—non-compliant crypto asset businesses to trade with impunity, and when can we expect that they will be put out of business?

[Baroness Penn (Con)]

I hope the third time is at least in part the charm. It is a criminal offence for a crypto asset exchange provider or custodian wallet provider to operate in the UK without anti-money laundering registration, and the FCA is empowered to take enforcement action against such a firm and its offices. The FCA is contacting firms on this list to establish whether they are operating in the UK, and it will take appropriate follow-up action.