Crypto.com Eyes Security Via Regulation As It Gains UK FCA Approval On Global Compliance Tour


Major crypto exchange Crypto.com has gained approval from the UK’s Financial Conduct Authority (FCA) in its most recent addition to its list of newly confirmed territories.

While Crypto.com services were already available in the UK, the FCA’s decision is a bullish indicator for the entire crypto industry.

Crypto.com becomes one of the only 37 crypto companies receive official approval from the FCA, with companies as big as Revolut still only holding a temporary registration. Other entities with full approval include Gemini, Ziglu, Bitpanda, Fidelity, eToro, Skrill, Uphold, and Wintermute.

The move makes Crypto.com the second largest exchange by trading volume to be approved by the FCA after Gemini. Crypto.com is “powered by CRO,” the fifth-largest native exchange token by market capitalization and the largest market capitalization of any FCA-registered entity.

exchange tokens
Source: CryptoSlate

The approval comes next in a growing list of territories that have licensed Crypto.com to officially operate in recent months. Since July, Crypto.com has obtained approvals and licenses in the Cayman Islands, Canada, South Korea, Cyprusand Italy.

Additionally, Kwon Park has been named the new CEO of Crypto.com in May. Park previously served as Strategy Director at Bittrex.

Amid a crypto industry reeling from news that open source code is now the target of OFAC sanctions in the US, Crypto.com is aggressively seeking legal approvals across the globe to solidify its position in the market.

Crypto.com co-founder and CEO Kris Marszalek said:

“This is an important milestone for Crypto.com, with the UK representing a strategically important market for us and at a time when the government is advancing its agenda to make Britain a global hub for technology and investing in crypto assets.”

Crypto.com is actively recruiting from the UK talent pool, with recent hires for UK Managing Director and Global Head of Sustainability and ESG. The company sees the UK as a “high potential market for cryptocurrency after a 650% increase in adoption.”

The addition of FCA approval enables Crypto.com to “offer a suite of products and services to UK customers, compliant with local regulations,” according to the press release. It is unclear whether this will mean access to new products and services.

However, compliance with local regulations can protect Crypto.com from the possibility of sanctions or other legal action in a turbulent regulatory landscape. Crypto.com is registered as “FORIS DAX UK LIMITED” in the UK

According to FCA Register.

Nevertheless, registration does not give direct protections to users because “you are unlikely to be protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme”.

A list of unregulated crypto-asset companies can also be viewed on the FCA website. These companies are still required to comply with AML, CTF and MLR regulations, but have not yet registered with the FCA.

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