By
Bhushan Akolkar
April 26th, 2024
The admittance of FTX Europe in the UK to undertake regulated activities will enhance the exchange platform’s expansion goals.
Barely one month after its establishment, FTX Europe is preparing to expand into the UK Switzerland-based FTX Europe was licensed and approved by CySEC earlier this month. The crypto exchange aims to offer products and services across the European Economic Area through an unidentified investment firm licensed to operate across the region. Currently, the firm is considering expanding into the UK, as confirmed by Head of FTX Europe Patrick Gruhn. He told CoinDesk:
“We are looking into the UK and thinking about expanding into the U.K. and we are just starting discussions with the FCA.”
With the fast-evolving blockchain industry, the UK believes it has prospects to be the universal center for the issuance, trading, and exchange of cryptocurrencies. The UK has been keen on regulating the crypto industry, and its regulatory body, Financial Conduct Authority (FCA), has carried out its operations duly. As part of its businesses, the Authority set a deadline for crypto businesses to register by March 31st. So far, the FCA has registered more than 100 crypto businesses. Although, only 33 are wholly authorized. The UK Treasury recently showed interest in crypto expansion, calling for its regulation and administration. The Treasury plans to retain a leadership position in fintech. The plans focus on stablecoins, that is, cryptocurrencies set on the value of other assets.
The UK has been tentatively strategic towards investing in cryptocurrencies. On January 6th, the FCA banned the sale of derivatives and exchange-traded notes. The regulatory body considers the products ill-suited for retail consumers due to their potential harm. In addition, UK regulators have been vocal about crypto’s financial risks. Britain’s finance minister, Rishi Sunak, will announce the crypto regulatory decisions of the UK government in the coming weeks.
The FCA’s Role in the Entry of FTX Europe, Others to the UK
The FCA became the UK’s authority for anti-money laundering and combatting the financing of terrorism (AML/CFT) in 2020. Again, since 2020, the FCA has registered more than 100 firms, of which only 33 are authorized. Other firms were on its Temporary Registration Regime (TRR), which allowed them to stay in business till the set time limit. The admittance of FTX Europe in the UK to undertake regulated activities will enhance the exchange platform’s expansion goals.
Two weeks ago, FTX Europe got the license to operate in Dubai, becoming the first crypto exchange there. Similar to the FCA, Virtual Asset Regulatory Authority (VARA) is the governing body for the crypto sector in Dubai. FTX Europe striving to enter the UK emphasizes its mission to be in the limelight of licensing and regulation across the globe.
Additionally, UK FCA-licensed global digital payment platform Wirex has withdrawn from the TRR ahead of March 31st. Wirex will now serve its clients based in the UK through its subsidiary Wirex Digital, licensed in Croatia by local regulator HANFA. Other leading crypto entities like Copper and Blockchain.com align with the TRR and look forward to FCA’s approval.