Cryptocurrency exchange Coinpass gets FCA approval
British cryptocurrency exchange Coinpass confirmed that it has obtained approval to operate a registered cryptoassets firm with the UK Financial Conduct Authority.
The move makes Coinpass among a handful of crypto asset firms that managed to receive such approval from the City watchdog. The nod from the UK financial regulator was a major hurdle for the company to overcome.
Just seven cryptocurrency-related companies are currently registered with Britain’s financial regulator. However, there are dozens of other crypto firms registered under the Temporary Registration Regime list. Coinpass itself was listed on the FCA’s temporary crypto-asset business register when it launched its new crypto trading platform back in July.
Jeff Hancock, CEO of coinpass, backed the push for regulatory approval, further saying:
“We’re exceptionally pleased to be among one of the first UK based cryptocurrency Trading Exchanges for retail investors and businesses to be fully registered with the Financial Conduct Authority as a crypto-asset firm. We understand and fully support that to evolve the cryptocurrency market to be more inclusive and attractive to a larger number of users, we would require regulatory guidelines for exchanges and gateways. The UK is a financial hub for investment and fintech and it has the potential, under the FCA’s guidance, to be a world leader in cryptocurrency regulation. With this registration, I am exceptionally bullish on the future for crypto in the United Kingdom and proud of our achievement”.
Since January 2020, the Financial Conduct Authority has been tasked with overseeing Anti-Money Laundering compliance for the UK’s crypto sector. At the time, the FCA kicked off a registration scheme for crypto-asset firms with an initial deadline of one year.
Amid a backlog of licensing applications, the FCA has extended its temporary licensing regime until March 2022 for firms whose applications haven’t yet been approved to allow them to continue trading.
However, nearly 70 crypto businesses had withdrawn earlier submitted filings for registration as the country tightens its regulation on the space. By retracting their applications, these firms had to cease operation in the UK, though dozens are still being assessed by the FCA.
The FCA approval for Coinpass comes following heavy criticism against other crypto companies. Most recently, the authority said Binance was not permitted to conduct regulatory operations in the UK. But the City watchdog reiterated its previous warning against the world’s biggest crypto exchange and said Binance Markets Limited, the UK division of Binance, has complied with all the requirements imposed by the FCA.