The UK’s Financial Conduct Authority (FCA) has made significant strides in the crypto space by approving the applications of Bitstamp and Interactive Brokers to join its registry of crypto asset service providers. This marks the first additions to the UK cryptocurrency register in six months, with a total of 42 recognized businesses registered to date. The FCA’s registration requirements demand that crypto companies adhere to anti-money laundering (AML) and counter terrorist financing (CTF) legislation in an effort to strengthen control and protect consumers in the cryptocurrency market.
Since opening applications on January 10, 2020, the FCA has received more than 300 applications from cryptocurrency companies. This move towards a safer environment for consumers and investors is evident in Bitstamp UK Limited’s announcement to its 500K+ followers on Twitter. Bitstamp, one of the oldest exchanges in the crypto sector, and Interactive Brokers (UK), a leading US brokerage, received approvals a day apart. Registration with the FCA gives users more confidence that these firms are complying with all necessary AML and CTL legislation.
Bitstamp CEO Jean-Baptiste Graftieaux stated that with mainstream adoption being their goal, Bitstamp is committed to establishing itself as a driving force in advocating increased regulation. The FCA registry is another milestone towards protecting UK crypto traders from illegal activities and safeguarding their funds from criminals.
While the current role of the FCA is focused on ensuring crypto companies adhere to existing regulations, a bill under consideration by Parliament could bring the crypto market fully within the regulatory perimeter. If approved, this legislation will grant the FCA and the Payments Systems Regulator more power to oversee the market and protect consumers.
The determination of UK financial regulators to address safety and security issues related to cryptocurrencies is further demonstrated by the FCA’s recent announcement of tougher rules on crypto advertising. New measures coming into force in October include a 24-hour “cooling off” period for consumers purchasing crypto assets. These regulations aim to enable businesses to interact with newcomers, while enforcing ethical business practices such as the inclusion of risk warnings on all crypto advertisements.
In conclusion, the recent regulatory developments in the UK showcase the growing importance of oversight and protection for crypto consumers, with FCA approvals for Bitstamp and Interactive Brokers representing a significant milestone. However, the balance between enforcing boundaries and promoting flexibility for crypto businesses remains a delicate challenge for regulators as they strive to address the concerns of both the industry and the public.
Source: Cryptonews
