Fintech UK is looking to partner with registered / regulated (or soon to be) cryptoasset firms on building out a cryptoasset section on our website.  If you are senior executive at a UK registered cryptoasset firm, please contact us here to discuss the proposed project.  Also happy to hear from senior executives at businesses which support crypto firms to support the project. See our CRYPTO page for more information

If you are are crypto firm seeking regulatory advice or director services, please contact CompliReg for assistance at the details appearing here and check out its VASP registration and other authorisation services here.

Hope you like the Map (Version 3.0)!
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Welcome to the second edition (version 3.0) of Fintech UK's and CompliReg's (a leading provider of fintech consulting services to crypto asset firms) UK FCA registered Cryptoasset Firms Map.

There are now 36 registered Cryptoasset firms appearing on the Financial Conduct Authority's (FCA) website as at Thursday 28th July 2022.  Welcome to Zodia Markets.  The FCA register records Zodia Markets registration effective 27th July 2022.  We also took the opportunity to update Solidi's logo too.

We will not repeat what we said in our Blog on Version 2, which was released recently on Monday 18th July 2022.  You can read the Version 2 blog here. 

As we continue to Map registered Cryptoasset firms, expect to see certain logos appear more than once as several brands will be registering several Cryptoasset firms for different purposes, such as - for example - services for (1) trading and (2) custody. An example of this is in fact Zodia.  While Zodia Markets (UK) Limited was registered on 27 July 2022, its affiliate Zodia Custody Limited was registered effective 15 July 2021.

At the time we released Version 1, there were 218 (thereabouts) unregistered cryptoasset business listed on the UK FCA's website that appear, to the FCA, to be carrying on cryptoasset activity, that are not registered with the FCA for anti-money laundering purposes.  As of today, that number has remained steady at 248 since 18th July 2022..

The firms thus far registered by the FCA include:

2020: Archax Ltd, Gemini Europe Ltd, Gemini Europe Services Ltd, Ziglu Limited, Digivault Limited, 

2021: Fibermode Limited, Zodia Custody Limited, Ramp Swaps Limited, Solidi Ltd, Coinpass Limited, CoinJar UK Limited, Trustology Limited, Commercial Rapid Payment Technologies Limited, Iconomi Ltd, Skrill Limited, Paysafe Financial Services Limited, Crypto Facilities Ltd, Fidelity Digital Assets LTD, Payward Limited, Galaxy Digital UK Limited, BABB Platform Ltd, BCP Technologies Limited, Zumo Financial Services Limited, Baanx.com Ltd, Bottlepay Ltd, Genesis Custody Limited, Altalix Ltd, 

2022: X Capital Group Limited, Enigma Securities Ltd, Light Technology Limited, eToro (UK) Ltd, Uphold Europe Limited, Wintermute Trading LTD, Rubicon Digital UK Limited, DRW Global Markets Ltd and Zodia Markets (UK) Limited

Revolut Ltd, as of today, is the only firm listed on the Temporary Registration list and it was listed on December 2021 list too.  Interestingly, in addition to a cryptoasset registration, the Revolut group hasn't achieved obtaining of its much talked about bank authorisation in the UK either.  ​

We are looking forward to seeing how many more will be registered before the end of the year.

The post accompanying Version 2 appears at:

• ​CompliReg: https://complireg.com/blogs--insights/uk-registered-cryptoasset-map-version-20-monday-18th-july-2021
• Linkedin: https://www.linkedin.com/posts/peteroakes_fintechuk-crypto-digitalasset-activity-6954800838179491840-lCjM?utm_source=linkedin_share&utm_medium=member_desktop_web

Further Reading:

Version 1 of the Map and the Blog of 20 December 2021 - located here

Version 2 of the Map and the Blog of 18 July 2022 - located here 

List of ​Unregistered Cryptoasset Businesses as at 28 July 2022 - located here

Here it is!

Released yesterday, A new Consumer Duty Feedback to CP21/36 and final rules Policy Statement PS22/9 27 July 2022.  See link to FCA page at end of this blog.
 
Final rules and guidance in UK for a new Consumer Duty (‘the Duty’) that will set higher expectations for the standard of care firms give consumers.
 
UK firms need to understand their customers’ needs and to have the flexibility to support them with certainty of the FCA's expectations, so they get good outcomes.
 
Under the Duty, firms will need to assess and evidence the extent to which and how they are acting to deliver good outcomes. Combined with the FCA's more data‑led approach, this should enable the FCA to more quickly identify practices that negatively affect those outcomes and to intervene before practices become widespread
 
 
Who this affects?

• regulated firms, including those in the e‑money and payments sector
• consumer organisations and individual consumers
• industry groups/trade bodies
• policy makers and regulatory bodies
• industry experts and commentators
• academics and think tanks

 
What is changing?
 Introducing rules comprising:

1. A new Consumer Principle that requires firms to act to deliver good outcomes for retail customers
2.  Cross‑cutting rules providing greater clarity on FCA expectations under the new Principle and helping firms interpret the four outcomes (see below). The cross‑cutting rules require firms to:

 

• act in good faith
• avoid causing foreseeable harm
• enable and support retail customers to pursue their financial  objectives

 
Rules relating to four outcomes the FCA wants to see under the Duty. 
These represent key elements of the firm‑consumer relationship which are instrumental in helping to drive good outcomes for customers.
 
These outcomes relate to:

1. products and services
2. price and value
3. consumer understanding
4. consumer support

 
The rules require firms to consider the needs, characteristics and objectives of their customers – including those with characteristics of vulnerability – and how they behave, at every stage of the customer journey. As well as acting to deliver good customer outcomes, firms will need to understand and evidence whether those outcomes are being met.
 
Implementation timetable:
 Firms will need to apply the Duty to new and existing products and services that are open to sale (or renewal) from 31 July 2023. The FCA has given firms longer, until 31 July 2024, to apply the Duty to products and services held in closed books.)

​Click here for Consumer Duty Feedback to CP21/36 and final rules Policy Statement 
 

Barclays Bank is reportedly taking a stake in Copper, a prominent name in the fast-evolving cryptocurrency sector.

The UK's Sky News reports that the UK-based bank is among a crop of new investors joining a funding round for Copper, which counts former chancellor Lord Hammond among its advisers.  The news agency reports that "City sources said Barclays was expected to invest a relatively modest sum in the millions of dollars as part of the round." and the fundraising is expected to be finalised within days.

Copper's strapline is that it provides an institutional gateway to digital asset investing through a trading system without moving assets to exchanges, eliminating the risk of hacked, frozen, or misappropriated assets.

It was reported earlier this year that Copper was targeting a valuation of at least $3bn in its latest capital raise but has since scaled that back, reflecting the growing crisis in the wider crypto-assets sector.  

Apparently Copper has also grown frustrated with the approach of UK financial regulators, prompting it to establish a hub in Switzerland instead.  That explains why Copper doesn't appear on Version 2 of Fintech UK's registered cryptoasset Map released last week.

​Barclays and Copper declined to comment.

​Copper, founded by Dmitry Tokarev in 2018, has drawn investors from big names in the global venture capital sector, such as LocalGlobe, Dawn Capital and MMC Ventures. Its institutional gateway provides custody, trading, and settlement solutions across 450 crypto- assets and more than 40 exchanges. 

Copper, recently together with Street Corporation, announced today that State Street Digital had entered into a licensing agreement through which State Street Digital will leverage Copper.co’s technology to develop and, subject to receipt of regulatory and other approvals, launch an institutional grade digital custody offering where clients can store and settle their digital assets within a secure environment operated by State Street. The firm will leverage its robust infrastructure and vast experience to assist clients’ transition and thrive in the new digital economy.

The UK's Innovate Finance released news on the levels of investment in UK FinTech which shows it continues to increase despite global slowdown.

Highlights from the announcement include:

• Total capital invested in FinTech globally reaches $59bn – flat year-on-year
• UK FinTech sector continues to grow with investment reaching $9.1bn – a 24% year-on-year increase from 2021
• UK remains second globally in FinTech investment, behind the US, and the top destination of Europe
• Capital was spread across 3,045 deals – which is slightly fewer than 2021 which saw 3,401 deals in the first half of the year
• Global slowdown comes with some exceptions including the UK which recorded a 24% year-on-year increase from 2021
• Value of the top 5 biggest deals globally in the first half of 2022 was $5.0 bn, with Checkout.com, one of the top five from the UK. The largest deals from highest to lowest were for FNZ ($1.4bn), Trade Republic ($1.2 bn), Checkout.com ($1bn), Ramp ($748m) and Coda Payments ($690m)
• US received the most investment in the first half of 2022, bringing in $25bn in FinTech capital, with the UK firmly in second place with $9.1bn, rounded off by India ($3.9bn), Germany ($2.4bn) and France ($2.3bn)
• Some countries have seen notable drops in investment in the first half of 2022 including Mexico, Netherlands, South Korea, and China, all falling down the global rankings. 

Commenting on the findings, Janine Hirt, CEO of Innovate Finance the industry body, said: 

“It is fantastic to see that UK FinTechs are continuing to secure outstanding levels of investment – this is a testament to the strength of our ecosystem, including our innovative entrepreneurs and founders, strong and diverse talent pool, and a supportive government and regulatory framework. 

“It is critical that we now keep up this momentum. The UK is currently receiving more investment in FinTech than all of Europe, second only in the world to the US. We must continue to work together – industry, government and regulators – to build on this leadership and ensure the UK remains the best place in the world to start, build and scale a FinTech business. This will positively impact not only the financial services sector but the entire population of the UK as a whole who will benefit from new, innovative, and more effective products that drive greater financial wellness.”

Further Reading:

• Innovate Finance Press Release
• Innovate Finance Full Analysis
  

​

Welcome to the second edition (version 2.0) of Fintech UK's and CompliReg's (a leading provider of fintech consulting services to crypto asset firms) UK FCA registered Cryptoasset Firms Map.

There are now 35 registered Cryptoasset firms appearing on the Financial Conduct Authority's (FCA) website as at Monday 18th July 2022.

The first 5 of these firms were registered in 2020. According to the FCA's records, the first registered Cryptoasset firm was Archax on 18 August 2020.  Then in 2021, the FCA registered 22 crypto firms.  Thus far in 2022, the FCA has registered 8 crypto firms.  The most recent to be registered is DRW (7 June 2021).

As we pointed out when we released Version 1.0 of the Map, 2021 saw a flurry of activity and especially in the last quarter of 2021 when 16 firms received their Cryptoasset registration from the FCA - that was a  whopping 60% of the total pool of registered firms at that time. At the current rate, the number of firms registered in 2022 may be less than that in 2021, unless the FCA registers a large pile of crypto firms in the second half of 2022.

As we continue to Map registered Cryptoasset firms, expect to see certain logos appear more than once as several brands will be registering several Cryptoasset firms for different purposes, such as - for example - services for (1) trading and (2) custody. 

At the time we released Version 1, there were 218 (thereabouts) unregistered cryptoasset business listed on the UK FCA's website that appear, to the FCA, to be carrying on cryptoasset activity, that are not registered with the FCA for anti-money laundering purposes.  As of today, that number has increased to 248.

The firms thus far registered by the FCA include:

2020: Archax Ltd, Gemini Europe Ltd, Gemini Europe Services Ltd, Ziglu Limited, Digivault Limited, 

2021: Fibermode Limited, Zodia Custody Limited, Ramp Swaps Limited, Solidi Ltd, Coinpass Limited, CoinJar UK Limited, Trustology Limited, Commercial Rapid Payment Technologies Limited, Iconomi Ltd, Skrill Limited, Paysafe Financial Services Limited, Crypto Facilities Ltd, Fidelity Digital Assets LTD, Payward Limited, Galaxy Digital UK Limited, BABB Platform Ltd, BCP Technologies Limited, Zumo Financial Services Limited, Baanx.com Ltd, Bottlepay Ltd, Genesis Custody Limited, Altalix Ltd, 

2022: X Capital Group Limited, Enigma Securities Ltd, Light Technology Limited, eToro (UK) Ltd, Uphold Europe Limited, Wintermute Trading LTD, Rubicon Digital UK Limited and  DRW Global Markets Ltd

When we released Version 1 we noted that there were 37 firms Cryptoasset firms with Temporary Registration.  You will see 39 on the previous list, but two of those firms were in fact registered - thus there seemed to be a timing issue of the records at the FCA. Regardless, some of the 37 achieved FCA registration in 2022 and others have dropped of the current list.  Revolut Ltd, as of today, is the only firm listed on the Temporary Registration list and it was listed on December 2021 list too.  Interestingly, in addition to a cryptoasset registration, the Revolut group hasn't achieved the obtaining of its much talked about bank authorisation in the UK either.  ​

Version 1 of the Map and the Blog of 20 December 2021 - located here
List of ​Unregistered Cryptoasset Businesses as at 18 July 2022 - located here