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UK Regulator Fines Monzo £21 Million ($28.6 Million) for Weak Financial Crime Controls

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Britain’s financial regulator, the Financial Conduct Authority (FCA), has fined digital bank Monzo £21.1 million ($28.57 million) for inadequate anti-financial crime systems and controls. The FCA highlighted failures in Monzo’s procedures between October 2018 and August 2020, including accepting customers who used well-known landmarks such as Buckingham Palace and 10 Downing Street as their addresses.

As Monzo expanded rapidly, it did not maintain sufficient safeguards to prevent financial crime risks, the FCA said in a statement issued Tuesday. After a 2020 review, the FCA imposed restrictions preventing Monzo from opening accounts for high-risk customers. However, from August 2020 to June 2022, Monzo repeatedly breached this requirement, onboarding over 34,000 high-risk customers.

Therese Chambers, FCA joint executive director of enforcement and market oversight, said, “Monzo onboarded customers on the basis of limited, and in some cases, obviously implausible information — such as customers using well-known London landmarks as an address. This illustrates how lacking Monzo’s financial crime controls were.”

Monzo’s CEO TS Anil acknowledged the issues but stressed that the problems have been resolved and substantial improvements have been made. Monzo remains committed to fighting financial crime.

Launched in 2015, Monzo is among the fastest-growing fintech firms in the UK. Yet, regulatory scrutiny has increased over financial crime controls in fintechs; Starling Bank was fined £29 million in 2024 for similar failings in anti-money laundering and sanctions screening systems.

Despite the fine, Monzo reported strong financial performance in its latest results, with pretax profit rising to £60.5 million for the year ending March 31, 2025, compared to £13.9 million the previous year. CEO Anil said it was too early to discuss a potential IPO.

Fear Grips France’s Crypto Community After Wave of Violent Kidnappings

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France’s cryptocurrency sector is reeling from a spate of violent kidnappings targeting crypto executives and their families, prompting fear, anger, and urgent calls for action within the industry.

The kidnapping attempt this week of the daughter of Pierre Noizat, CEO of French crypto firm Paymium, in broad daylight on a Paris street, is the third high-profile incident in recent months. The disturbing video footage has sparked outrage and forced many executives to alter their routines, boost personal security, and consider leaving France altogether.

“Working in the ecosystem feels like having a target on your back,” said Alexandre Aimonino, 23, co-founder of a crypto compliance firm.

A String of High-Profile Attacks:

  • January: A Ledger co-founder and his wife were kidnapped. A ransom was paid in crypto, and later recovered by police.

  • May: The father of another crypto executive was kidnapped and physically mutilated. Seven people were arrested.

  • This week: Noizat’s daughter narrowly escaped abduction in what appeared to be a coordinated attack by a masked gang.

All victims have been rescued, but the escalating violence and brutality—including finger amputations—have deeply rattled the community.

Crypto’s Visibility Becomes a Liability:

Experts say a surge in crypto wealth, combined with a lack of traditional financial oversight, is attracting organized criminals:

  • High-profile executives often share wealth indicators online.

  • Crypto ransoms are perceived as easier to launder than cash.

“Crypto transactions are more likely to escape scrutiny than traditional banking systems,” said Michael Lyons, anti-money laundering lawyer at Clifford Chance.

Security Response and Regulatory Backlash:

  • Interior Minister Bruno Retailleau has promised stronger protection, including home security audits and priority access to police services.

  • Some leaders, like Ledger co-founder Eric Larchevêque, are pushing for legal reforms, including:

    • The right to bear arms

    • Greater protection for self-defence

Meanwhile, Paymium is advocating deregulation of crypto in response to EU’s “travel rule”, which mandates tracking of sender/receiver information for transfers. The firm argues it exposes executives to targeting.

Industry-Wide Fallout:

  • Demand for bodyguards and private security has surged, according to firms Wagram and ARECIA.

  • Crypto insurance providers in the UK, like Ben Davis, report that 100% of clients now ask about kidnapping protection, up from nearly zero two years ago.

“These attacks are becoming more gruesome, more brazen,” said Davis, himself a crypto investor who has upgraded his own security.

The crisis threatens to push innovators and startups out of France, undermining the country’s ambition to be a crypto and fintech leader in Europe. Without urgent and coordinated action, industry insiders warn that security fears could erode trust and drive the sector underground.

U.S. Senate Blocks Stablecoin Bill, Delivering Setback to Crypto Industry

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A bill aimed at establishing a U.S. regulatory framework for stablecoins failed to advance in the Senate on Thursday, marking a significant setback for the crypto industry and stalling hopes for near-term federal legislation governing dollar-pegged digital tokens.

Known as the GENIUS Act, the legislation fell short of the 60 votes needed to proceed to a full Senate vote, securing only 49 votes in favor. The failure comes despite months of lobbying by the crypto sector, which poured over $119 million into supporting pro-crypto candidates during last year’s election cycle and framed stablecoin regulation as a bipartisan issue.

Stablecoins — cryptocurrencies designed to maintain a stable 1:1 peg to the U.S. dollar — are widely used in crypto trading and payments, and their mainstream use has grown rapidly. While the industry had hoped the bill would pass this year, Democratic pushback intensified, particularly in light of former President Trump’s growing involvement in crypto ventures.

Two Republican senators — Josh Hawley and Rand Paul — voted against the bill alongside most Democrats, citing unresolved concerns. Senator Mark Warner, a Democrat who had previously backed the bill in committee, explained his opposition during the vote:

“The work is not yet complete, and I simply cannot in good conscience ask my colleagues to vote for this legislation when the text isn’t finished.”

A group of Democrats who initially supported the measure accused Republicans of refusing to strengthen the bill’s anti-money laundering safeguards and foreign stablecoin oversight, particularly following news that Trump-affiliated World Liberty Financial would launch a stablecoin to support a $2 billion Abu Dhabi-backed investment in Binance.

Senate Majority Leader John Thune expressed frustration on the floor after the vote, blaming Democrats for halting momentum:

“Not every bill that comes to the floor is a final bill… This was a missed opportunity for a bipartisan win.”

With this latest setback, the path forward for stablecoin regulation remains uncertain, and the crypto industry is left grappling with yet another delay in achieving formal legal clarity in the U.S. financial system.