UK FCA floats personal-wallet due diligence in nonbinding crypto guidance
AI summary
The UK Financial Conduct Authority has published nonbinding guidance proposing that crypto firms perform due diligence checks on personal, unhosted wallets as a matter of good practice. The consultation also criticizes unexplained third-party risk scores and rigid tracing rules. Although the guidance is not binding, it signals tighter scrutiny of self-custody transfers in the UK, a concern for traders who move assets off exchanges.
