U.K. FCA Draft Flags Rigid Crypto Tracing Limits Without Risk Measures

The U.K. Financial Conduct Authority (FCA) proposed risk-based crypto tracing guidance, calling rigid limits on blockchain transfers poor practice when firms lack measures suited to identified risks. The FCA opened a consultation Oct. 23 proposing changes to its Financial Crime Guide. The guide spans seven subjects: fraud, cryptoasset risks, sanctions, preventing proliferation financing, data security, systems and controls for financial crime, and efforts against money laundering and terrorist financing. The FCA said the guide “does not contain rules nor impose any new requirements.” The draft addresses how far firms trace a blockchain transaction by counting transfers in its path, or “hops.” It sets no universal hop count or threshold for when tracing should end.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to TokenPost.