Major cryptocurrency exchange Crypto.com has secured approval from the UK’s Financial Conduct Authority (FCA) in the latest addition to its list of newly confirmed territories.
The Crypto.com service was already available in the UK, but the FCA’s decision is a bullish indicator for the crypto industry as a whole.
Crypto.com has become one of 37 cryptocurrency companies to be granted formal FCA approval, with large companies like Revolut still holding only temporary registrations. Other entities with full approval include Gemini, Ziglu, Bitpanda, Fidelity, eToro, Skrill, Uphold, and Wintermute.
The move makes Crypto.com the second largest exchange by trading volume approved by the FCA after Gemini. Crypto.com is the 5th largest native exchange token by market capitalization and the largest market capitalization of any entity registered with the FCA, “powered by a CRO.”
The approval comes next in the list of territories that Crypto.com has officially given permission to operate over the past few months. Since July, Crypto.com has secured approvals and licenses in the Cayman Islands, Canada, South Korea, Cyprus and Italy.
Additionally, Kwon Park was appointed as the new managing director of Crypto.com in May. Park previously served as Chief Strategy Officer at Bittrex.
Crypto.com Aggressively Seeks Legal Approvals Around the World to Solidify Its Market Position Amid Crypto Industry Unsettled by News That Open Source Code Is Now Subject to US OFAC Sanctions I am looking for
Crypto.com co-founder and CEO Chris Marzalek said:
“This is an important milestone for Crypto.com, as the UK is a strategically important market for us and the government is pushing its agenda to make the UK a global hub for crypto technology and investment. It is in time.”
Crypto.com is actively recruiting from its UK talent pool, most recently hiring a UK General Manager and Global Head of Sustainability and ESG. The company sees the UK as a “potential market for cryptocurrencies after a 650% increase in adoption.”
According to the press release, the addition of FCA approval will allow Crypto.com to “provide UK customers with a range of products and services that are compliant with local regulations.” Whether this means access to new products and services remains unclear.
However, compliance with local regulations may protect Crypto.com from sanctions and other potential legal action in a turbulent regulatory environment. Crypto.com is registered in the UK under the name “FORIS DAX UK LIMITED”.
According to the FCA Register, all companies registered with the FCA must “comply with the Money Laundering, Terrorist Financing and Transfers of Funds (Payer Information) Regulations (MLR) 2017, as amended, and register with the FCA. need to do it.
Nonetheless, registration does not directly protect users as they are “unlikely to be protected by the Financial Ombudsman Service or financial services compensation schemes.”
A list of unregulated cryptocurrency companies can also be found on the FCA website. These companies are still required to comply with AML, CTF and MLR regulations, but have not yet registered with the FCA.