Bitstamp, a well-established crypto exchange, has secured regulatory approval from the Financial Conduct Authority (FCA) to operate in the UK. This notable milestone, granted on June 13, positions Bitstamp UK Limited as the latest addition to the FCA’s crypto register.
Remarkably, it follows closely on the heels of Interactive Brokers (UK) receiving approval, marking the first approvals for crypto asset firms in six months. Joining the ranks of TP ICAP, Revolut, Gemini, Kraken, and eToro, these recent approvals highlight the growing number of reputable companies in the UK’s crypto space.
Operating in the UK necessitates adherence to the FCA’s stringent anti-money laundering checks. While the UK government has been actively promoting London as a cryptocurrency hub, the regulatory approval process has faced criticism for its perceived sluggishness and conservative approach.
Since the FCA initiated applications for registration under its money-laundering rules in January 2020, meeting the regulator’s criteria by the March 31, 2022 deadline proved challenging for many. As a result, only 42 crypto firms have successfully registered to date, leading to frustration within the digital assets community.
However, the future regulatory landscape may bring increased clarity as the UK’s Financial Services and Markets Bill progresses through parliament. This bill aims to establish the legislative groundwork for financial services regulation encompassing stablecoins and crypto assets, further empowering the FCA.
In response to the approval, Bitstamp expressed pride in achieving this recognition, affirming their unwavering commitment to operating at the highest standard. The exchange emphasized that their platform provides compliant and secure access to cryptocurrencies in the UK, aligning with the rigorous requirements set forth by the FCA.
Bitstamp and Interactive Brokers now join a growing cohort of firms, including a16z, displaying interest in establishing a presence in the UK. These companies are drawn to the more favorable regulatory environment offered to crypto businesses compared to recent enforcement actions witnessed in the US market by the Securities and Exchange Commission.
