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- Archax and Gemini are now fully registered to provide crypto-related services in the UK.
- The two have met the UK’s Anti-Money Laundering (AML) and Terrorist Financing (CTF) regulations.
- FCA has emphasised that businesses should register with the watchdog by 10 January 2021 to avoid being banned.
UK-based digital security exchange, Archax, and Gemini, belonging to the Winklevoss twins, are now licensed to operate in the country which has been confirmed through the UK’s Financial Conduct Authority (FCA) website.
Additionally, the FCA has warned unregistered crypto businesses to register with the agency as soon as possible. Otherwise, they will be banned after 10 January 2021.
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Archax FCA approval
Archax that was the first to receive the license on 18 August 2020 is the first-ever regulated digital securities custodian in the UK. Archax also disclosed in a blog post that the platform had also received crypto-asset registration from the FCA, making it a legit Virtual Asset Service Provider (VASP).
While commenting on the milestone, David Lester, a non-executive director at Archax stated,
‘’Blockchain and tokenisation are innovations that can empower more frictionless and transparent markets which, combined with an FCA regulated exchange like Archax, can deliver what capital providers, business leaders, and founders now really need. ‘’
Graham Rodford, the CEO of Archax, added,
“We have been talking to the FCA for a while and the application process has been a tough journey, but we are pleased to have now achieved our first significant milestone as we prepare to launch the UK’s first FCA regulated digital securities exchange later this year.
Gemini is also approved
A day after Archax received its license, Gemini UK also appeared on the watchdog’s website on 19 August 2020. The crypto exchange is a branch of Gemini Europe Limited, which is owned by the famous crypto twins, Cameron and Tyler Winklevoss. The two shot to fame when they became the ‘first self-made Bitcoin billionaires’ during the 2017/2018 bull run.
FCA crypto regulation in the UK
The UK financial watchdog had given crypto operators in the country up to 30 June to submit applications detailing how they would comply with the country’s new requirements. The watchdog called for applications following the release of a consultation paper to the public in January, which gave guidance on the operation of crypto companies in the country. FCA is UK’s official supervisor of anti-money laundering and counter-terrorist financing.
UK’s booming crypto scene
There’s growing crypto-related activities in the UK, and the government is keen to regulate the industry. The Bank of England is already working on developing a Central Bank Digital Currency (CBDC) that will help with financial traceability and audit in the country. The UK is encouraging the development of DLT applications that will help solve various challenges in the country.