- Sixty-four crypto firms have so far withdrawn their registration application with the FCA.
- One of those facing a regulatory issue is Binance which has been served with a consumer warning by the FCA over its operations in the UK.
It was recently reported that the Financial Conduct Authority (FCA) has been authorized to supervise the growing number of crypto firms in the UK. This was part of the measures to inform the public of firms that comply with proposed government regulations. The government is looking to subject cryptos to critical scrutiny to prevent money laundering and terrorist financing. However, some crypto firms have ditched their attempt to register with the financial watchdog. Even some that submitted their registration application are beginning to withdrawing. According to reports, roughly 64 firms have so far changed their minds and pulled their applications.
In a statement by the FCA spokesperson, only six crypto firms have had a successful authorization with a dozen others undergoing assessments, but deemed not fit to operate.
According to the FCA, most of these firms do not meet the regulatory requirement to operate in the UK.
A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations resulting in an unprecedented number of businesses withdrawing their applications.
Binance has been called out by the FCA
Binance, one of the largest crypto exchanges in the world, has also been served with a consumer warning as it does not meet the requirements of the FCA. According to the regulatory body, Binance is not permitted to undertake any regulated activity without a written concern of the FCA.
The Binance Group appears to be offering UK customers a range of products and services via a website, Binance.com… No other entity in the Binance Group holds any form of UK authorization, registration, or license to conduct a regulated activity in the UK.
Japan’s Financial Service Agency has also stated that Binance is operating illegally in the country. Regardless of these warnings, Binance is yet to make any public comment on the situation. However, the exchange always emphasizes that it works closely with regulators and law enforcement to strengthen security and sustainability in the crypto ecosystem while providing the best of experience to its customers.
The FCA has aligned with several high-profile international regulators in the US and Asia to provide a safe environment for crypto operation and reduce the risk exposure for users.
The UK has recorded substantial growth in crypto adoption in the last few years. According to one research, the number of people who bought crypto in the UK has increased by 558 percent since 2018. These numbers have encouraged the government to take a hard look at the different firms offering services to its citizens.
This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.
John Kumi
John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table.His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface.John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation.John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience.John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space.Business Email: info@crypto-news-flash.com Phone: +49 160 92211628
FAQs
The FCA continues to believe cETNs and crypto derivatives are ill-suited for retail consumers due to the harm they pose. As a result, the ban on the sale of cETNs (and crypto derivatives) to retail consumers remains in place. The FCA continues to remind people that cryptoassets are high risk and largely unregulated.
Which crypto companies are FCA approved? ›
Best crypto exchanges that are FCA registered
- Kraken: Best crypto exchange (overall) ...
- CoinJar: Best exchange for value. ...
- eToro: Best for beginners & instant purchases. ...
- Crypto.com: Best exchange for altcoins. ...
- Revolut: Best all-in-one finance app. ...
- Gemini: Best exchange for NFTs. ...
- Uphold: Best for a debit card.
Bitcoin is a risky investment with high volatility, and generally should be considered only if you have a high risk tolerance, are in a strong financial position already and can afford to lose some or all of your investment.
Is the UK regulator to allow crypto exchange-traded notes for professional investors? ›
LONDON, March 11 (Reuters) - Britain's financial watchdog on Monday approved the launch of crypto-backed exchange-traded notes for professional investors, becoming the latest regulator to allow digital asset products while trying to shield retail investors.
What are the new FCA rules for crypto? ›
Since 8 October 2023, firms wishing to promote cryptoassets in the UK to retail consumers must, by law, be authorised or registered by the FCA, or have their marketing approved by an authorised firm. PS23/6: Financial promotions rules for cryptoassets.
What are the new rules for FCA crypto? ›
The new legislation applies to all exchange companies that are trading cryptocurrencies to UK investors. The FCA will enforce a ban on “refer a friend” bonuses in adverts. It all wants companies to make sure that any adverts for cryptocurrency are “clear, fair and not misleading”.
Is Coinbase regulated by FCA? ›
Our E-Money services are regulated by the UK Financial Conduct Authority (FCA) and E-Money in your Coinbase account(s) is issued by CB Payments Ltd which is an electronic money institution authorised and regulated by the FCA .
Is bitcoin regulated by FCA? ›
Largely unregulated
It's true that crypto businesses operating in the UK do have to register with us and abide by our anti-money laundering rules, as well as our new marketing rules. The marketing of crypto is regulated, and you can help protect yourself by recognising regulated crypto marketing.
What is the FCA warning list? ›
Our Warning List shows the firms that we're concerned are working without our permission. We add firms to this list as soon as possible. But if a firm isn't on the list, it may still be unauthorised or be a scam. Unauthorised firms often change their names, and we may not be aware of it yet.
What is the safest cryptocurrency? ›
Cryptocurrencies are incredibly volatile and not for all investors. Decide if they fit your risk tolerance before diving in. Bitcoin and Ether are in a league of their own as the two best cryptocurrencies to buy. Four more speculative cryptos are worth a look, each with their own defining characteristics.
Ethereum (ETH) Price Prediction 2030
According to your price prediction input for Ethereum, the value of ETH may increase by +5% and reach $ 3,940.37 by 2030.
Should I buy Bitcoin in 2024? ›
Preparing for the Bitcoin Halving 2024
Experts believe buying Bitcoin before the event occurs for the long-term will be much more favorable, as the price might invariably increase a few months post-halving.
Who regulates cryptocurrency in us? ›
At the federal level, the following bodies are responsible for making the required cryptocurrency regulation in the US – the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Trade Commission (FTC), the Treasury Department, through the Internal Revenue Service (IRS), ...
Does anyone regulate cryptocurrency? ›
Who Is the Crypto Regulator? In the U.S., who regulates crypto depends on how and where it is used. The Securities and Exchange Commission, the Chicago Mercantile Exchange, the Commodity Futures Trading Commission, and the Financial Industry Regulatory Authority are all involved in some regard.
Are crypto transactions regulated? ›
Currently, at least four federal regulatory authorities are involved in managing cryptocurrency risks. This includes the Securities and Exchange Commission (SEC), the Commodity Features Trading Commission (CFTC), the Department of Justice (DoJ) and the Department of the Treasury.
Does the FCA regulate cryptocurrency? ›
It's true that crypto businesses operating in the UK do have to register with us and abide by our anti-money laundering rules, as well as our new marketing rules. The marketing of crypto is regulated, and you can help protect yourself by recognising regulated crypto marketing.
Does FCA take responsibility for my crypto assets? ›
At the FCA, our current remit over crypto is limited to making sure that crypto firms that operate here comply with anti-money laundering and counter-terrorism legislation. Only when the government legislates will we have more powers to regulate crypto.
How does the IRS view cryptocurrency? ›
You may have to report transactions with digital assets such as cryptocurrency and non-fungible tokens (NFTs) on your tax return. Income from digital assets is taxable.
Is crypto com approved by FCA? ›
The firm holds licenses from the Monetary Authority of Singapore, US, France, Singapore, Australia, etc.
