ChainCatcher news, according to Finance Magnates, the UK's Financial Conduct Authority (FCA) defended its "overly strict" approach to the registration of cryptocurrency companies, stating that strong standards are crucial for establishing a sustainable and trustworthy digital asset industry.Val Smith, the FCA's Director of Payments and Digital Assets, responded today in a statement to criticisms that the regulator's stringent requirements could stifle innovation in the crypto industry and that the registration threshold is "too high." Smith warned, "Innovations built quickly on unsafe, unregulated, and untrustworthy foundations are like houses built on sand—likely to collapse. Instead, we want to work closely with the government, industry, and partners in other jurisdictions to develop a crypto industry built on reliable, solid foundations."The FCA has come under scrutiny for the relatively low number of cryptocurrency companies registered under the UK's Money Laundering Regulations (MLR). Some industry observers believe that the regulator's standards may be too high and could jeopardize the UK's position as a global financial leader. Smith countered these claims, emphasizing that the FCA never directly rejects applications and takes the risks of financial crime seriously. She mentioned concerns regarding terrorism, organized crime, sanctions evasion, and human trafficking.

ChainCatcher news, according to CoinDesk citing two informed sources, the crypto payment company BCB Group was once the subject of an investigation by the UK's financial services regulator, which has now concluded. The two informed sources requested anonymity due to the private nature of the matter.The Financial Conduct Authority (FCA) issued a so-called s166 notice to BCB at the end of last year. This investigation has now concluded, and according to a source close to BCB, the outcome of the investigation is positive for the company. Additionally, a third informed source added that BCB is engaged in constructive negotiations with the regulator to discuss expanding its licensing scope.BCB CEO Oliver Tonkin commented in an email: "BCB Group has always adhered to a compliance-first approach in its business activities and will continue to do so. We maintain regular, open, and transparent dialogue with all regulators, and from our perspective, our relationships with all regulators are in good standing. Our interactions with the FCA continue to be positive, and we have recently obtained permission to expand our regulatory scope in the UK, as we hope."

ChainCatcher news, the UK's Financial Conduct Authority (FCA) stated that over 87% of the crypto company registrations received in 2023-24 did not meet the approval standards.The FCA mentioned in its annual report that out of 35 applications received in the 12 months ending March 31, only 4 successfully qualified. The companies that successfully registered include Binance's payment partner BNXA (a subsidiary of PayPal UK) and Nomura's cryptocurrency custody joint venture Komainu. The remaining companies were either denied a license or rejected due to a lack of key elements required for assessment.

ChainCatcher news, Coinbase's CB Payments Ltd. (CBPL) has been fined £3.5 million ($4.5 million) by the UK's Financial Conduct Authority (FCA) for providing services to high-risk customers. It is reported that CB Payments Ltd. (CBPL) is an electronic money institution and payment processor associated with the cryptocurrency exchange Coinbase (COIN).

ChainCatcher news, according to Jinshi reports, the UK's Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA) jointly called for information provision regarding digital wallets.

ChainCatcher news, the UK's Financial Conduct Authority (FCA) has stated that it is clearing a "backlog of business," approving an increasing number of cryptocurrency companies for registration, and expanding its cryptocurrency business capacity to 100 employees.Steve Smart, the Joint Executive Director for Enforcement and Market Oversight at the FCA, stated in a speech yesterday that the speed of cryptocurrency companies registering with the regulator is accelerating as the FCA helps them better navigate the registration process.

ChainCatcher news, in response to the rise in fraud cases, the UK's Financial Conduct Authority (FCA) has announced a series of guidelines for financial services companies and social media influencers regarding the posting of memes about cryptocurrencies and other investments. The FCA stated in a statement that any marketing content for financial products— including content expressed through memes— should be fair, clear, and not misleading. The regulator requires that all financial social media influencers must obtain approval from an FCA-designated representative before posting advertisements and memes related to financial products and services.The FCA noted that the use of memes for promotion is particularly common in the cryptocurrency industry, especially on platforms like Telegram and Reddit. This move is part of the FCA's measures in response to the increasing trend of financial fraud, as the regulator removed over 10,000 misleading financial services advertisements in 2022.

ChainCatcher news, cryptocurrency payment infrastructure provider Banxa announced that its UK subsidiary BNXA UK VASP has completed registration with the UK's Financial Conduct Authority. After being added to the regulator's list, BNXA UK VASP can provide cryptocurrency services to UK customers. Currently, Banxa offers fiat processing, identity verification, and trading services to clients of cryptocurrency exchanges such as Binance and OKX. (CoinDesk)

ChainCatcher message, the UK's Financial Conduct Authority (FCA) has added the cryptocurrency exchange LYKKE to its warning list, stating that LYKKE may be promoting financial services or products without permission.The FCA reminds users that if they have complaints when dealing with this company, they will not have access to the Financial Ombudsman Service, and if issues arise, they will not be protected by the Financial Services Compensation Scheme (FSCS).

ChainCatcher news, payment giant PayPal has successfully registered as a crypto service provider with the UK's Financial Conduct Authority, authorized to engage in "certain crypto asset activities." Companies providing cryptocurrency services in the UK must obtain registration approval and comply with the FCA's anti-money laundering rules.Previously, in August, PayPal announced a temporary suspension of cryptocurrency purchases in the country to comply with the regime.

ChainCatcher news, the UK Treasury has released the final proposal for the regulation of crypto assets, outlining the UK government's intention to bring certain crypto asset activities under the scope of financial services regulation for the first time. The government's position is that companies dealing directly with UK retail consumers, regardless of their location, should be required to obtain authorization.The document describes that companies engaged in crypto asset activities must now obtain authorization from the UK Financial Conduct Authority, including a provision that cryptocurrency exchanges must provide detailed requirements for entry standards and mandatory disclosures when listing new assets.

ChainCatcher news, the UK's Financial Conduct Authority (FCA) has issued a warning regarding common issues in cryptocurrency marketing. The FCA stated that since October 8, it has identified three common issues with financial promotions of crypto assets, including (1) promotions claiming "safety," "security," or the convenience of using crypto asset services without emphasizing the risks involved; (2) risk warnings that are not sufficiently prominent due to small font, hard-to-read colors, or inconspicuous placement; (3) companies failing to provide customers with adequate information about the risks associated with the specific products being promoted. The FCA expects authorized firms approving financial promotions for crypto asset companies to take their regulatory obligations seriously, or else it will take action and has already imposed restrictions on one authorized firm, prohibiting it from approving financial promotions for crypto assets. The FCA stated that it is working with businesses such as social media platforms, app stores, search engines, and domain registrars to remove or block illegal promotions. We are also collaborating with payment companies to limit UK consumers' exposure to companies that publish illegal promotional activities. Furthermore, the FCA will continue to identify and take action against companies illegally marketing crypto assets to UK consumers.

ChainCatcher news, the UK's Financial Conduct Authority (FCA) has issued a statement warning all companies promoting crypto assets to UK consumers, including overseas firms, that they must comply with the UK's financial promotion regime. However, many crypto companies have refused to cooperate with the FCA, with only 24 out of more than 150 companies responding to a survey. The FCA stated that this raises serious concerns about the readiness of unregistered companies to comply with the new regime. Strong action will be taken if any companies are found to be violating the regime by promoting crypto assets.Previously, the FCA sent letters to companies marketing crypto assets to UK customers, requiring them to comply with the upcoming financial promotion regime, or face criminal charges, which could result in up to 2 years in prison, unlimited fines, or both. The FCA's order takes effect from October 8, which includes overseas companies selling their products to UK customers.

ChainCatcher news, according to Bloomberg, the UK's Financial Conduct Authority (FCA) stated that some new regulations on crypto marketing can be postponed until 2024, given the need to give crypto companies more time to change their marketing processes, but the core content will still be implemented on October 8 of this year.This means that starting from October 8, cryptocurrency services will be classified as a high-risk investment category in UK marketing materials, and all platforms must display risk warnings to UK customers.

ChainCatcher news, the UK's Financial Conduct Authority (FCA) has released guidelines on financial promotions on social media, which includes a section on non-compliant crypto memes.The FCA stated, "We have observed that memes and other similar communications are circulating on social media, and users often do not realize that this content is subject to our rules. Memes that are considered to promote crypto assets may need to include disclaimers to comply with advertising regulations. Violating the financial promotion rules for crypto memes could result in unlimited fines and up to two years in prison."

ChainCatcher news, Sarah Pritchard, Executive Director of the UK Financial Conduct Authority (FCA), stated at the London City Week conference that there are plans to strengthen the regulation of marketing for crypto activities. The rules will be announced after the legislation is proposed, and once the government legislates, relevant companies will have 4 months to make corrections.In addition, the FCA has been working closely with the government to develop proposals for regulating stablecoins that can be used for payments and is consulting on the regulation of a broader crypto asset framework, with the public able to provide feedback until April 30.In the future, the Treasury may also decide to introduce a reciprocal registration system for overseas crypto companies. Sarah Pritchard mentioned that she hopes to obtain industry feedback to ensure the right unregulated framework is established for crypto assets. (source link)

ChainCatcher news, cryptocurrency payment application MoonPay has obtained registration from the UK's Financial Conduct Authority (FCA), indicating compliance with local anti-money laundering regulations. It is reported that MoonPay appeared on the FCA's register on December 9, providing an API to handle customer identification and fraud prevention programs. (CoinDesk)

Chain Catcher news, according to CoinDesk, Revolut has obtained permission from the UK's Financial Conduct Authority (FCA) to offer cryptocurrency services in the UK.It is reported that Revolut previously provided cryptocurrency buying, selling, and trading services to UK users under the FCA's Temporary Registration Regime (TRR), which is designed to allow companies to continue operating while their applications are being reviewed. (CoinDesk)