Crypto News: In a recent development, the Financial Conduct Authority (FCA) in the UK has given its approval for Bitstamp and Interactive Brokers to join the financial regulator’s registry of crypto asset service providers. This marks the addition of the first businesses to the UK cryptocurrency register in the past six months.
The FCA’s registration process requires crypto companies to adhere to anti-money laundering (AML) and counter terrorist financing (CTF) legislation, thereby aiming to strengthen control and protect consumers in the cryptocurrency market. With the inclusion of Bitstamp and Interactive Brokers, there are now a total of 42 recognized businesses registered to date.
The FCA’s crypto registry brings about a sense of safety and security for consumers and investors. By being registered with the FCA, users of the services provided by Bitstamp and Interactive Brokers can be more confident in the compliance of these firms with necessary AML and CTL legislation. This initiative is a significant milestone in the ongoing efforts to protect UK crypto traders from illegal activities and safeguard their funds from criminals.
Bitstamp UK Limited, one of the oldest exchanges in the crypto sector, shared the news of their registration with their 500K+ followers on Twitter. They expressed gratitude to their customers for their continued support. Interactive Brokers (UK), a leading US brokerage, also received approval from the FCA a day prior to Bitstamp.
While the FCA’s current responsibilities revolve around ensuring compliance with existing regulations, there is an upcoming bill under consideration in Parliament that aims to bring the entire crypto market within the regulatory perimeter. If approved, this legislation will grant the FCA and the Payments Systems Regulator more authority to oversee the market and provide enhanced protection to consumers.
The commitment of UK financial regulators to address safety and security concerns related to cryptocurrencies is further evident in the FCA’s recent announcement of stricter rules on crypto advertising. New measures, set to take effect in October this year, include the implementation of a 24-hour “cooling off” period for consumers purchasing crypto assets. These regulations seek to strike a balance between enabling businesses to engage with newcomers and enforcing ethical practices, such as the inclusion of risk warnings in all crypto adverts.
In conclusion, the approval of Bitstamp and Interactive Brokers to the UK’s crypto registry signifies a significant step forward in the regulation of the cryptocurrency market. With the FCA’s focus on anti-money laundering and counter terrorist financing legislation, consumers and investors can have increased confidence in the compliance and security measures undertaken by registered service providers.