In a consultation paper published on October 26, the UK Financial Conduct Authority (FCA) described due diligence on unhosted wallets (personal wallets) as “good practice,” while emphasizing that the paper is not legally binding.
The paper also criticized two types of practices: third-party ratings whose sources cannot be explained, and blanket tracking rules. In other words, the FCA favors requiring firms to assess wallet risks themselves rather than directly applying external scores or fixed tracking standards.
The proposal is currently at the consultation stage and has not yet become a formal rule. The final provisions and scope of enforcement remain to be confirmed.
The paper also criticized two types of practices: third-party ratings whose sources cannot be explained, and blanket tracking rules. In other words, the FCA favors requiring firms to assess wallet risks themselves rather than directly applying external scores or fixed tracking standards.
The proposal is currently at the consultation stage and has not yet become a formal rule. The final provisions and scope of enforcement remain to be confirmed.
