UK Crypto Exchanges Pose Low Money Laundering Risk, Says Global Watchdog

Cryptocurrency exchanges in the U.K. present a "Low risk" for money laundering and terrorist financing activities, according to a report published last week by the Financial Action Task Force, a global anti-money laundering policymaker.

States that while such activities are an "Emerging risk," there is not enough evidence yet to suggest that they are occurring through crypto exchanges.

The regulator has asked the U.K. authorities to work on a plan to extend anti-money laundering and counter financing of terrorism rules in the crypto sector, as well as elsewhere, in order to tackle any potential risks.

"Continue to develop an understanding of emerging risks and intelligence gaps, and take appropriate action."

As a result, the nation is planning to regulate cryptocurrency exchanges under its implementation of the EU's fifth Anti-Money Laundering Directive.

Monitor exchange services between cryptocurrencies and fiat, as well as wallet providers.

The report arrives in the build-up period before FATF issues guidance for global cryptocurrency regulation, expected by June 2019.

The guidance will set out how nations should govern crypto exchanges, companies offering initial coin offerings and digital wallet providers.

"We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards and we will consider other responses as needed," they stated.

On the international community earlier this year for stronger cryptocurrency regulations.