We have refused Zeux Limited’s application for registration as a cryptoasset exchange provider under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).
Read the Decision Notice (PDF)[2]
The application, submitted in June 2022, showed that the firm had failed to implement anti-money laundering controls and carry out effective risk management.
At the FCA, we want to support a competitive crypto sector in which people and our financial markets’ integrity are protected. This means that effective money laundering controls are essential.
Zeux Limited’s application
The anti-money laundering controls put forward by Zeux Limited fell well short of legislative requirements. Registration of the firm would have posed a significant risk of harm to the public. The application showed:
- Failure to understand, identify and document risks.
- Failure to consider the National Risk Assessment, which sets out key money laundering and terrorist financing risks in the UK.
- Customer risk assessment enhanced due diligence and suspicious activity reporting (SAR) failures.
These points are critical for mitigating the risks of money laundering, terrorist financing and sanctions evasion that a customer may pose.
MLR registration for crypto firms
Cryptoasset exchange providers must be registered with the FCA and comply with the UK money laundering regulations to operate legally in the UK.
We encourage firms considering applying for crypto registration to engage with us early and to seek guidance through pre-application meetings with our team.
If you’re a firm that wants to become registered under the Money Laundering Regulations:
- Read through what you’ll need to do to apply and the frequently asked questions on our dedicated webpage for crypto firms.
- See examples of good and poor practice for submitting an application.
Engage with us early on – contact us to book a pre-application meeting at [email protected]. - Make sure you provide complete applications for us to assess.