The summer season is marked by a rapidly accelerating phenomenon: the race for registration and licensing. Indeed, authorities around the world are called upon by players in the cryptocurrency sector to ensure that they comply with local regulations. This is a major issue for them, given that it is on this sole condition that they obtain, or not, the right to exercise and provide their services in a given territory. And the differences in visions and policies between each state are beginning to be felt. Because when some welcome them with open arms, others are wary and/or simply refuse them. However, there is a certain tendency which is rather favorable to them. Evidenced by the decision of the British regulator about Crypto.com.
For the record, the British regulator refers to the Financial Conduct Authority (FCA), which has had a role of supervision and control of the industry since 2020. If it works mainly on subjects related to money laundering using cryptocurrencies , it is she who delivers the recordings.
And on this last point, the FCA is not pretending. Many UK companies in the sector have relocated due to pressure that she put on their backs. In particular on compliance with legislation relating to transparency and the fight against money laundering, evasion and fraud.
However, the Crypto.com cryptocurrency exchange platform seems to have met all of its criteria since the authority has just granted it registration in the register of financial services. However, this authorization is only half-hearted.
UK – Crypto.com registers for “certain activities”
The information is shared in an official statement from the FCA. He explains that Crypto.com has obtained a registration in its financial services register, under the name “FORIS DAX UK LIMITED”. It is a diet similar to the French diet (PSAN).
Nevertheless, the authorization only concerns “certain activities” of the platform. According to the FCA, the activities that Crypto.com would be allowed to offer range from crypto exchange – decree and vice versa. The exchange of crypto for crypto is also allowed.
As a result, Crypto.com now has the right to provide its services – excluding some – United Kingdom. And every consumer will be able to complain about the company to the Financial Ombudsman Service and the Financial Services Compensation Scheme (FSCS). For example in the event of a claim for compensation which would be the direct consequence of a bankruptcy of the company.
At the same time, the British authorities granted her a status which recognizes that she complies with money laundering regulations.
Crypto.com continues its growth strategy
Crypto.com has set its sights on other jurisdictions. Indeed, in addition to the United Kingdom, the platform is now registered with the financial regulator of Singapore (MAS) and is in the pre-registration phase with the SEC of Canada. In addition, South Korea, Cyprus, Greece, Italy and Dubai have already granted it provisional license.
In other words, the company has a bright future ahead of it. According to some commentators, it could even overtake Binance if it continues its ascent on this path.
Of course, she is not the only one to be granted licenses. As mentioned, other actors benefit from a legal status since the beginning of the summer season. To name just two, this is for example the case of Coinbase, or even Revolut.
FCA cracks down on promotion of crypto products
At the same time, the regulator announces that it is seeking to ban companies from promoting crypto products from users without assessing their financial knowledge and experience.
“We only want consumers to access crypto-assets knowingly, and after being assessed as having sufficient knowledge and experience to understand the risks involved. We therefore propose to apply to cryptoassets the same financial promotion rules that we propose to apply to other high-risk investments. »
FCA official statement.
More and more authorities are actually looking into promotional campaigns, which are sometimes misleading. And leading to dramatic financial consequences for unsophisticated investors. This is a growing phenomenon. Recently, several celebrities have been singled out for this reason.