The UK’s Financial Conduct Authority has issued operating licenses to two cryptocurrency exchanges operating in the country– Archax digital stock exchange and the UK branch of the twin exchange of the Winklevoss twins.
According to the website of the Financial Conduct Authority (FCA) Both Archax and Gemini Europe Services are currently registered as crypto asset companies in the UK as of August 18-19, respectively. Both crypto exchanges had to meet the compliance requirements with regard to a risk assessment of the mandatory regulations for combating money laundering and terrorist financing from January 10th.
Archax said in a blog post on Aug. 19 that The FCA’s decision had made it “the UK’s first FCA regulated digital stock exchange and custodian”..
More than a month ago On July 6, Kraken announced that it was the first cryptocurrency exchange licensed by the FCA. However, the subsidiary of Crypto Facilities is currently listed as licensed for “certain types of products and activities” only, but not in the same category as Archax and Gemini.
The UK Financial News reported on it Timo Schlaefer, CEO of Kraken, said the exchange had obtained a license from the FCA’s multilateral trading facility. Currently, Archax and Gemini are the only two companies on the FCA’s list of registered crypto asset companies.
The new regulation that the FCA applies to crypto-asset companies is part of the agency’s efforts to comply with the provisions of the European Union’s 5th Anti-Money Laundering Directive (5AMLD) and the Financial Action Task Force (FATF).
The FCA was officially appointed as the regulator for all cryptocurrency businesses in the UK in January.. Companies doing business in the country must put in place both surveillance and control systems to eliminate potential threats from AML and CTF.
The agency asked all cryptocurrency companies to register by June 30thto ensure your applications are processed before January 10, 2021. If you fail to meet the deadline, you will have to go out of business in the UK. UK exchanges, including CEX subsidiary Decent Finance Limited, have stated that they are authorized to conduct “electronic money” activities, while UK-based Coinfloor has stated that they are “in communication” with the FCA.