thecoinrepublic.com
- Coinpass has been granted permission to operate as a crypto assets firm by the UK regulator
- Since its start, Coinpass has aimed to bring banking and cryptocurrency transactions together on a single digital layer
- The bitcoin industry exposes UK investors and traders to the risk of money laundering
Coinpass said yesterday that it had acquired clearance from the UK authority to become a crypto assets firm. The Coinpass management team stated in announcing the regulatory permission that it has always believed in regulating aspects of the cryptocurrency eco-system that interact with the traditional financial world.
Coinpass has created a digital layer that combines banking and cryptocurrency transactions.
Since its start, Coinpass has aimed to bring banking and cryptocurrency transactions together on a single digital layer. Our registration with the UK Financial Conduct Authority is now complete, and our ambition is one step closer to becoming a reality, according to a statement released by the company on Wednesday.
Coinpass CEO Jeff Hancock expressed his delight: They are extremely thrilled to be among the first UK-based cryptocurrency Trading Exchanges for retail investors and enterprises to be fully registered with the Financial Conduct Authority as a crypto-asset firm. They recognize and fully support the need for regulatory rules for exchanges and gateways in order to evolve the cryptocurrency market to be more inclusive and appealing to a wider range of users.
By investing in cryptocurrencies like Bitcoin and Ethereum through offshore unregulated exchanges, UK investors and traders in the cryptocurrency industry were previously exposed to potential money laundering, fund loss, and poor customer service.
UK banks have been rejecting Cryptocurrency transfers
Due to the jurisdiction of some exchanges or the source of funds, while trying to liquidate crypto assets holdings, many UK banks have rejected cryptocurrency transfers from client accounts. The implementation of required registration by UK crypto-asset enterprises for offering crypto assets in accordance with Anti-Money Laundering standards, laws, and policies is designed to secure the robustness and improvement of the cryptocurrency ecosystem for UK investors.
Crypto breaches and fraud climbed by 40.7 percent in 2020, according to a recent analysis by Crypto Head, compared to 2019. In terms of the number of offenses in the sector, this year is expected to surpass the previous year. Crypto Head found that the average value of a major fraud was above $46 million in 2020, and on track to cross $93 million in 2021, according to a study that looked at notable breaches and fraud involving crypto from 2011 to 2021.
Over the last ten years, a total of $19.2 billion has been taken in crypto breaches and fraud, with 2017 appearing to be a standout year, with $4.7 billion stolen by hackers. Bitcoin continues to be the currency of choice, accounting for 33.3 percent of all breaches. The US is the most targeted country, with the most breaches, followed by the United Kingdom. Given the size of the stakes, it’s unsurprising that the UK regulator is demanding cryptocurrency exchanges to be more compliant with its rules than they were previously.