The United Kingdom Financial Conduct Authority (UK FCA) has granted digital securities exchange and custodian Archax license to operate in the country.
Notably, with the new accreditation, Archax becomes the first formally regulated digital securities exchange in the UK. Also, it becomes the first-ever digital asset firm to receive UK FCA registration as a Virtual Asset Service Provider (VASP).
The UK FCA has granted Archax a multilateral trading facility (MTF) license for the digital securities marketplace. It includes custody permissions to store clients’ digital and fiat assets, and brokerage permissions for its platform. Also, the new license covers anti-money laundering requirements.
Getting the UK FCA approval was tough
Graham Rodford, CEO of Archax in his statement expressed his excitement at being the first exchange to get the UK FCA license. He noted that getting the approvals took “a while” and the application process was “tough.”
However, Rodford noted that Archax technology partners are second to none, and the exchange currently has a pipeline of 35 digital issuances in place. Also, he disclosed that the London-based exchange is signing up global brokers and market makers in preparation to go-live.
Similarly, David Lester, former Chief Strategy Officer of the London Stock Exchange Group and Non-Executive Director at Archax, stated that taking into account the current state of the global economy, it is key that financial institutions provide new and efficient ways for small and medium-sized businesses to access capital.
Crypto businesses have until January 2021, to register
As previously reported, all new and existing digital currency organisations in the UK are required to be registered with the FCA. Notably, for existing crypto firms, the final deadline to get registered is January 10, 2021, or they will have to end their operations in the UK.
It’s worth noting that the UK FCA is in charge of the functioning of the UK’s financial markets. According to the FCA, it’s goal is to ensure honest and fair markets for individuals, businesses, and the economy as a whole.
Notably, European countries are enforcing crypto regulations based on FATF guidelines. European Union’s fifth AML Directive is being carried out in European countries.