CoinJar, one of the earliest cryptocurrency exchanges operating out of the UK, has announced that it has been officially registered by the Financial Conduct Authority (FCA) in the UK as a Cryptoasset Exchange Provider and Custodian Wallet Provider.
For crypto exchanges in the UK, it has now become a necessity for them to be registered with the FCA if they wish to carry on their business. Binance was recently asked to shut down its business in the UK as it did not have such a license. These licensing powers were vested with the FCA since January 2020 and it was tasked with overlooking the crypto businesses and studying how they perform KYC and comply with the Money Laundering Regulations that are currently in place in the UK. CoinJar has become one of the very first crypto exchanges to have their registration approved though it is expected that many more would follow suit.
Asher Tan, CEO of CoinJar said, “We are a long-established, highly regarded crypto exchange, so we are very pleased to have this official recognition by the FCA and to be one of the first to have received it. As a business that embraces regulation and innovation in equal measure, the establishment of a clear regulatory framework from the FCA gives CoinJar long-term operating certainty in the UK, benefitting our investors and company partners.”
The company next plans to add a variety of features and products to its range of offerings which includes the launch of a white-label service that would provide an opportunity for many businesses to launch their own digital currency processing. The company also plans to launch its own Card, in partnership with Mastercard which can be used to spend crypto just like cash, both offline and online as well. The number of active crypto users and holders in the UK has been increasing this year and the company would hope that the launch of these new products, along with strong regulatory compliance and background would convince more people to begin trading and investing in crypto in the coming months.
It is expected that more such exchanges and other crypto-related businesses are likely to be licensed by the FCA shortly which should further help to move crypto to the mainstream which would be beneficial to everyone within the crypto industry in the UK.