The post UK Regulators Draft New AML Rules for Crypto Firms appeared on BitcoinEthereumNews.com. In brief The draft legislation attempts to  close loopholes and updates rules for evolving risks. The new change-in-control threshold for crypto firms would be lowered to 10%. A consultation will be open until September 30, with regulations to be put before Parliament in early 2026. The UK’s HM Treasury released a draft of proposed changes to current money laundering regulations this week that address loopholes and evolving risks, including stricter requirements for crypto businesses. “[The updates aim] to deliver a more risk-based, proportionate regime that is robust against financial crime whilst remaining workable for industry,” according to the draft document. “The government has also committed to improve sectoral guidance on AML/CTF compliance on a range of issues, and to publish separate guidance on the use of digital identity verification for AML/CTF purposes.” AML and CTF are finance industry shorthand for anti-money laundering and counter-terrorist financing. The release follows a public consultation in 2024, which highlighted weaknesses in the UK’s regime linked to pooled client accounts, trust registration, crypto business oversight and challenges in customer due diligence. The risks are significant, according to the National Risk Assessment of Money Laundering and Terrorist Financing report published in July. It found the UK remains highly exposed due to its large and open economy. Meanwhile, the Home Office’s Economic Crime Survey 2024 estimated that 2% of UK businesses—around 33,500—had experienced known or suspected money laundering in the prior year. The survey found that fraud, much of it cyber-enabled and linked to overseas actors, now accounts for more than 43% of all crime in England and Wales. Within this landscape, crypto assets are increasingly a concern. A Financial Conduct Authority, or FCA, survey in 2024 found 12% of UK adults owned cryptoassets, and law enforcement has noted their growing role in laundering schemes, often through… The post UK Regulators Draft New AML Rules for Crypto Firms appeared on BitcoinEthereumNews.com. In brief The draft legislation attempts to  close loopholes and updates rules for evolving risks. The new change-in-control threshold for crypto firms would be lowered to 10%. A consultation will be open until September 30, with regulations to be put before Parliament in early 2026. The UK’s HM Treasury released a draft of proposed changes to current money laundering regulations this week that address loopholes and evolving risks, including stricter requirements for crypto businesses. “[The updates aim] to deliver a more risk-based, proportionate regime that is robust against financial crime whilst remaining workable for industry,” according to the draft document. “The government has also committed to improve sectoral guidance on AML/CTF compliance on a range of issues, and to publish separate guidance on the use of digital identity verification for AML/CTF purposes.” AML and CTF are finance industry shorthand for anti-money laundering and counter-terrorist financing. The release follows a public consultation in 2024, which highlighted weaknesses in the UK’s regime linked to pooled client accounts, trust registration, crypto business oversight and challenges in customer due diligence. The risks are significant, according to the National Risk Assessment of Money Laundering and Terrorist Financing report published in July. It found the UK remains highly exposed due to its large and open economy. Meanwhile, the Home Office’s Economic Crime Survey 2024 estimated that 2% of UK businesses—around 33,500—had experienced known or suspected money laundering in the prior year. The survey found that fraud, much of it cyber-enabled and linked to overseas actors, now accounts for more than 43% of all crime in England and Wales. Within this landscape, crypto assets are increasingly a concern. A Financial Conduct Authority, or FCA, survey in 2024 found 12% of UK adults owned cryptoassets, and law enforcement has noted their growing role in laundering schemes, often through…