UK forcing AML regulations on cryptocurrency exchanges, ATMs, and open-source wallets

The UK's Financial Conduct Authority is cracking down on cryptocurrency exchanges, ATMs, and open-source projects like wallet providers.

These services will have to comply with anti-money laundering regulations by 2020, imposing banking-style controls over crypto in the nation.

The bombshell came as part of the FCA's newly released policy statement on cryptocurrency, "PS19/22: Guidance on Cryptoassets," aimed at token issuers, software developers, exchanges, or investment firms dealing in cryptocurrencies.

Cryptocurrency exchange services and peer-to-peer exchange services.

Publication of open-source software involving cryptocurrency.

UK AML regulations will ultimately require all crypto-transmitting businesses, which apparently includes non-custodial wallet providers, to register the particulars of all customers including their name, official photo identification, and proof of address, or what the FCA calls "Customer due diligence." If the identity of a "Customer" is in doubt, the law requires them to be denied service.

Crypto businesses and service providers may also be required to employ staff for monitoring suspicious transactions, a standard requirement under British AML regulations.

Overall, the law could set a grim portent for the entire cryptocurrency industry.

The FCA's latest "Guidance" doubles down on what seems to be rapidly becoming an iron-fisted stance on cryptocurrency.

The UK may be the world's key stronghold for banking, having for decades dominated both the world's foreign exchange and wholesale financial services markets.