- Summary:
- Crypto.com has upped its expansion appetite, getting approval to operate in the UK. We tell you what this means for the firm and the country.
Crypto.com, one of the world’s largest digital assets trading companies, has today announced that it has received authorization from the UK’s regulator, Financial Conduct Authority (FCA) to operate its cryptocurrency business. The FCA document reveals that FORIS DAX UK LIMITED is the legal entity holding the exchange license. According to the FCA’s Financial Services Register entry, the cryptocurrency exchange is authorized to offer “some cryptoasset operations.” Also, the company is compliant with local anti-money-laundering (AML) rules now that it has received this certification.
Crypto.com’s growth appetite what the FCA approval means
The Financial Conduct Authority (FCA) defines “cryptoasset activity” as the buying and selling of cryptocurrencies. The definition also covers the buying and selling of cryptocurrencies for fiat currency or other cryptocurrencies. Users can legally buy cryptocurrencies with fiat currency like GBP, sell cryptocurrencies for fiat, or trade cryptocurrencies for stablecoins, following the license issuance.
Many countries have responded to the recent decline in the value of cryptocurrencies by establishing new regulatory frameworks and imposing new restrictions. Nonetheless, the UK Treasury has been very public about its desire to make the United Kingdom a global cryptocurrency hub. The first crypto legislation in the UK was introduced in July, embedded within the UK Markets bill, and is currently up for debate in Parliament.
Crypto.com has been on an expansion spree, despite the gloomy market conditions. Recently, the company has obtained authorization to conduct business in a number of jurisdictions. These include Canada, Italy, the United Arab Emirates, and South Korea. With about 50 million customers, we will likely see more market action from the company.
While the FCA does not directly control cryptocurrencies themselves, it does oversee derivatives of cryptocurrencies. Examples include products like futures contracts, contracts for difference (CFDs), and options. Therefore, a company can’t market or sell these items in the UK without FCA’s approval.