Recently a Singapore-based cryptocurrency exchange Crypto.com got approval from Britain’s financial services regulators. The company announced the same on Wednesday. As crypto.com has joined the FCA (Financial Conduct Authority)’ s register, it can now offer a wide range of services and products in the UK that complies with various “terrorist” financing rules and anti-money laundering laws.
Kris Marszalek (CEO of crypto.com) cited that the United Kingdom is an important market for them strategically. This would help UK citizens to adopt the crypto products and fully fulfill the government plan of making Britain a hub for cryptocurrency assets.
Crypto.com Received UK Regulatory Approval
Currently, Cryptocurrencies are not regulated in several countries, including the UK. Also, if any consumer loses their digital assets, there is no insured amount.
Earlier, FCA had backlashed the crypto sector and turned down registration applications from various crypto companies. An insider from FCA said they couldn’t comment on specific firms but would provide more information as they continue to work with several regulators.
The criteria for getting approval from the FCA is meeting the minimum standards to prevent terrorist financing and money laundering.
FCA’s lawyer further added that they work with various crypto firms and are ready to offer help if they comply with all the conditions and meet the basic requirements. FCA has set quite a high bar when approving cryptocurrency firms.
Meanwhile, The UK regulatory firm is still quite skeptical and cautious about the crypto industry. It does not stand with the commitment to support competition and innovation within the financial sector.
Cryptocurrencies are still unregulated by the FCA, though it was brought in as the asset class in 2020 under the anti-money laundering regulations. This means that cryptocurrency companies need to register with the FCA before they conduct any business.
There is constant pressure on the regulatory firms to tighten the regulations despite the high fraud and scams.
A few months back, FCA warned the consumers who hold crypto assets after a surge in cryptocurrency holders. Many critics have said that FCA needs exposure to cryptocurrencies to understand the cryptocurrency asset class completely.
Earlier this year, in March, Crypto.com hired several employees from the UK, including the Global head of sustainability, ESG, and UK general manager. According to Banklesstime, the UK is quite a high potential market since the crypto adoption rate has increased to 650 percent from 2018 to 2021.
Crypto.com would continue to grow and expand its ecosystem worldwide. Currently, they have more than 50 million users all across the globe. The regulatory approval from the UK would generate more momentum for future growth. Crypto.com had licenses from Dubai Virtual Assets Regulatory Authority, Virtual Asset Service Provider South Korea, Italy, and Greece.
Cryptocurrencies are still emerging as an investment class. The security of these transactions has drawn some criticism. Also, there have been instances of people fearing out because there are no proper regulations on crypto transactions.