VASP registration in the UK is mandatory for crypto businesses targeting UK customers. Learn what the FCA requires, why applications get rejected, and how to navigate the complex compliance process.
AML Crypto UK: What You Need to Know About Anti-Money Laundering Rules for Cryptocurrency
When you trade or hold crypto in the UK, you’re subject to AML crypto UK, Anti-Money Laundering rules that require crypto businesses to verify users and report suspicious activity. Also known as crypto KYC regulations, these rules are enforced by the Financial Conduct Authority (FCA) to stop criminals from using digital assets to hide illegal funds. This isn’t optional—every exchange, wallet provider, or DeFi platform operating in the UK must follow them. If they don’t, they get shut down. That’s why platforms like CoinCasso and Paycml disappeared: they ignored AML rules and got flagged as scams.
The UK doesn’t just care about exchanges. If you’re running a business that accepts crypto, or even if you’re trading large amounts personally, you could be caught in the net. The FCA tracks transactions, requires ID verification, and demands records of where funds come from. This is why legitimate platforms like CoinFalcon ask for your passport or utility bill—they’re not being nosy, they’re following the law. And if you skip this step? You can’t trade. You can’t withdraw. You’re locked out. Meanwhile, fake airdrops like DeFiHorse or APAD often ask for your private key or upfront fees—classic signs of money laundering schemes trying to slip through the cracks. The UK’s AML system exists to block exactly these kinds of traps.
It’s not just about identity checks. The rules also force platforms to monitor unusual patterns: sudden large deposits, rapid transfers between wallets, or trading through multiple accounts. That’s why OPNX failed—it tried to trade bankruptcy claims, a gray area that raised red flags with regulators. Swiss banks, on the other hand, lead in crypto custody because they built compliance into their systems from day one. In the UK, if a platform doesn’t have a clear AML policy, it’s not safe to use—even if it looks fancy or promises high returns. The truth is simple: if it doesn’t ask for your ID, it’s probably illegal.
What you’ll find below are real cases of crypto platforms that ran into trouble under UK AML rules. Some were outright scams. Others were just poorly run. All of them ignored the same basic truth: in the UK, crypto isn’t lawless. It’s watched. And if you’re not following the rules, you’re not just risking your money—you’re risking your legal standing. These posts don’t just list failures. They show you how to spot the warning signs before you get caught in the same trap.