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Attention: New Crypto Regulations Prompt New Compliance Criteria At PayRate42!

Cryptocurrencies have been gaining popularity in recent years, with many investors and businesses turning to them as a means of payment and investment. However, with the rise in use of cryptocurrencies, there has also been an increase in regulatory scrutiny. Recently, new crypto regulations have been introduced, prompting CyberRating agency PayRate42 to implement new compliance criteria.
CyberRating Agency PayRate42 announced new compliance criteria for crypto firms

New Regulations For Crypto

New regulations in the UK and the EU aim to provide a framework for the use of cryptocurrencies and to prevent money laundering and other financial crimes. As a result, companies like PayRate42 must ensure they are compliant with these regulations to continue operating in the crypto space.

In 2023, we saw new regulatory frameworks for crypto companies come into force in Europe and the UK. Crypto platforms will need to be regulated by the FCA to work with UK retail clients. Therefore, these UK clients will also receive emails from their crypto firms asking them to fill out an investor profile and complete a competency quiz.

However, UK regulation (see FCA announcement here) does not mean that clients’ funds are protected. It just means that these crypto firms have to comply with rules and are monitored by the FCA. In the EU, MiCA (see MiCA announcement here) will only come into force in all member states in the next few years.

New PR42 Crypto Compliance Criteria

PayRate42 will focus even more on transparency in the future. In a high-risk segment such as cryptos, customers should not increase the risk again through a lack of transparency or misleading information. Crypto companies must communicate openly and honestly via their website.

PayRate42 PayRate42 announced today that it is adding to its criteria for the compliance rating of crypto companies. Without regulation in the jurisdictions in which these companies operate, they will automatically receive an Orange Compliance Rating even if all other criteria are met.

In addition, the responsible regulatory authority and the operating legal entity must be stated on the crypto company’s website and be easy to find. This must also be included in the terms and service agreement. This is important in case customers want to complain.

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