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Crypto.com has announced that it will start operating as a provider of electronic money services in the UK after approval by the Financial Conduct Authority. As a licensed Electronic Money Institution (EMI), Crypto.com will offer a suite of localized e-money products that align with the best practices that uphold customer protection. Commenting on the approval, the Crypto.com CEO said:
The UK has and continues to be a hugely important market for our business and the greater industry. We look forward to continuing to collaborate with a global regulatory leader in the FCA in our collective pursuit of responsible innovation for crypto.
The award of the FCA license happened after Crypto.com registered with the UK regulator in August 2022. The registration allowed Crypto.com to undertake certain digital asset activities in the country, complying with UK regulations.
Avoiding the regulatory hurdle
Crypto.com has endeared itself to regulators as a compliant crypto exchange, avoiding the experiences of its peers such as Binance and Kraken. The exchange has received multiple regulatory approvals and licenses in a global expansion spree.
In June this year, Crypto.com obtained an in-principle approval for digital token service in Singapore. The exchange also has a pending application as a provider of virtual asset services in Dubai and France. In the US, Crypto.com is registered as a derivative clearing organization with the Commodity Futures Trading Commission.
Crypto.com’s moves occur when global regulators are cracking down on unregistered crypto and digital asset service providers. The UK has been cautious about crypto innovations, with ongoing plans to regulate the sector.
In February 2023, UK’s Economic Secretary to the Treasury Andrew Griffith warned that the government would seek to regulate several crypto assets in line with traditional finance. Griffith said that although the country remains committed to enabling technological innovation, including crypto assets, it remains wary of the risks it poses.
Similar regulatory moves have been undertaken elsewhere, with the US the latest to crack the whip on Binance for violating its market rules. Binance was forced to pay $4.3 billion to settle the case. Other market developments are expected as analysts speculate about the growth in compliant exchanges after the Binance saga.
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