One of the largest cryptocurrency exchange platforms, Crypto.com, has registered with the UK’s Financial Conduct Authority (FCA) and received regulatory approval as a cryptoasset business.
Crypto.com will now be able to offer UK customers a ‘suite of products and services’ under compliance of the FCA’s regulations.
In March, Crypto.com announced several senior hires in the UK, including the appointment of a UK General Manager and a Global Head of Sustainability and ESG. The UK is seen as a high-potential market for cryptocurrency according to crypto platform, following a 650% increase in adoption from 2018 to 2021, according to research by BanklessTimes.
“This is a significant milestone for Crypto.com, with the UK representing a strategically important market for us and at a time when the government is pushing forward with its agenda to make Britain a global hub for crypto asset technology and investment,” said Kris Marszalek, Co-Founder and CEO of Crypto.com.
“We are committed to the UK market and we look forward to developing our platform and presence in the UK further by expanding our offering to customers, while continuing to work with regulators.”
Since its formation in 2016, Crypto.com has established itself as one of the leading crypto exchange markets with over 50 million customers. Regulation of cryptocurrencies and digital assets remains a glaring obstacle, but the platform did find regulatory success in Canada, falling in line with the country’s OSC regulation guidelines.
The UK Treasury has been vocal in its pursuit of establishing the country as a ‘global hub for cryptocurrency’, as just last month, the UK’s first crypto bill was proposed inside the UK Markets bill and to be debated at length in Parliament.
The FCA’s new agreement with Crypto.com suggests that UK regulators and governing bodies are taking further steps for cryptocurrency adoption and ultimately, regulation. But the FCA has not always been so welcoming to crypto exchange platforms in the past.
The UK watchdog handed another leading crypto platform, Binance, a ban to operate within the country in June 2021, restricting the firm from conducting any regulated activities not under FCA supervision.
In its statement on the Binance ban, the FCA stated: “While we don’t regulate cryptoassets like Bitcoin or Ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities’.
“A firm must be authorised by us to advertise or sell these products in the UK – check our Register to make sure the firm is authorised.”
The FCA has since then amended some of the aspects of its crypto adoption policies and now, with the recent registration of Crypto.com to help carry out crypto-related activities, the UK appears more welcoming to crypto asset providers than ever before.