LONDON—A new study is raising concerns over the commitment of U.K. cryptocurrency firms when it comes to effective customer verification.
According to the findings from SmartSearch, most aren’t properly checking customer lists against sanctions or politically exposed persons (PEP) records, BeInCrypto.com reported.
The findings reveal that barely one-in-five crypto firms (17%) consistently verify new customers. Furthermore, half of them admit to conducting such checks only sporadically, BeInCrypto.com stated in its analysis.
“The survey sheds light on various compliance practices within a spectrum of industries, including high-street and challenger banks, cryptocurrency platforms, property developers, and gambling companies,” BeInCrypto.com reported.
How Research Was Conducted
The research, carried out by Censuswide, involved 500 U.K. compliance decision-makers aged 18 and above. The survey took place between May 26 and July 2, 2023.
The data show that just over 42% of over-the-counter traders have adjusted their compliance procedures since the imposition of sanctions on Russia, following its invasion of Ukraine.
Crypto exchanges are doing slightly better, with over 52% adopting additional measures, BeInCrypto.com stated.
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