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Welcome to version 11.0 of Fintech UK's and CompliReg's (a leading provider of fintech consulting services to crypto asset firms) UK FCA registered Cryptoasset Firms Map.  We have also partnered with MiCAReady.com which assist digital asset firms meet the requirements under the MICA Regulation. Please get in touch with CompliReg and MiCAReady.com via their websites and give them a follow at Linkedin at https://www.linkedin.com/company/complireg and https://www.linkedin.com/company/mica-ready/

How many registered cryptoasset firms are there in the UK?

There are now 45 registered Cryptoasset firms appearing on the Financial Conduct Authority's (FCA) website as at 18th October 2024.  This represents an increase in numbers since version 10.0 was issued on 12th September 2024.

Version 11 of the Map welcomes the entry of ComplyCrypto Depository which was registered by the UK FCA on 26th September.

ComplyCrypto Depository is a partnership between Gentium UK Limited and Complyport Limited.  It aims to establish itself as a leader in the UK’s crypto-compliance market, focusing on transparency, regulatory compliance, and innovation.

ComplyCrypto Depository is a partnership between Gentium UK Limited and Complyport Limited.  It aims to establish itself as a leader in the UK’s crypto-compliance market, focusing on transparency, regulatory compliance, and innovation.

Richard Strike, Managing Director of ComplyCrypto, stated, “ComplyCrypto’s mission is to ensure that the growing cryptocurrency marketplace is safer for the economy and society as a whole. By adhering to the stringent requirements set forth by the MLRs, ComplyCrypto ensures its operations remain fully aligned with regulatory obligations related to Anti-money Laundering (AML) and Counter-Terrorist Financing (CTF) measures.”

Paul Grainger, Chairman of Complyport and Director of ComplyCrypto, expressed gratitude to the FCA for their “invaluable technical guidance and advice, their professionalism and patience throughout the registration process.” He reaffirmed the commitment of ComplyCrypto’s team to help build a safer crypto-asset marketplace.

​How many firms have been registered and deregistered by the UK FCA?

For those interested in the details, the number of registrations since 2020 until today are as follows:

• 2020 – 4 registrations
• 2021 - 25 registrations (3 firms registered in 2021 were subsequently deregistered)
• 2022 – 12 registrations
• 2023 – 4 registrations
• 2024 – 3 registrations

Total: 48 less 3 de-registrations = 45.  These 45 UK FCA registered crypto firms are shown on our Map.
​

How many unregistered crypto firms appear on the FCA register?

​There remains now 44 'unregistered cryptoasset business’ according to the latest FCA records.  There has been now change to the number or names of these 44 firms between 12 September to 18 October 2024.  However this is sharp decline since the publication of Version 9.0 Map when there were 69 such unregistered crypto firms.

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 Zodia Markets (UK) Limited and its affiliate Zodia Custody Limited.

It is important to note that crypto firms registered in the UK cannot offer their services from the UK into Europe.  Those UK companies which are part of a group of companies where one of the group members holds a VASP registration in a Member State can offer service sin that Member State only.  Once the VASP achieves MiCA Regulation authorisation in their Member State or in another Member State and has the necessary passporting permissions, they will be able to offer those services across the EEA.  If you are unsure of:

• the registration requirements in the UK, please contact CompliReg.
• the authorisation requirements in the EEA, please contact MiCA Ready. 

Linkedin Posts:  https://www.linkedin.com/posts/peteroakes_cryptoasset-cryptocompliance-fintechuk-activity-7254485024501067777-bvhd

FCA Letter to Payments and Emoney Firms (7 October 2024) (from Matthew Long, Director, Payments & Digital Asset; Supervision, Policy & Competition)

FCA Letter to Banks and Building Societies (7 October 2024) (from Emad Aladhal, Director, Retail Banking Supervision, Policy & Competition).

Started as a Linkedin Post by Peter Oakes, Founder of Fintech UK. ​https://www.linkedin.com/feed/update/urn:li:activity:7249312812194230272/

Summary of the Banks and Building Society Dear CEO Letter:

The letter outlines the FCA's expectations regarding Authorised Push Payment (APP) fraud reimbursement and highlights several key points:

1. Financial Crime Prioritization: The FCA emphasizes its commitment to reducing financial crime, particularly APP fraud, which significantly harms society and consumer confidence.
2. New Reimbursement Measures: Effective October 7, 2024, the PSR requires Payment Service Providers (PSPs) using the Faster Payments System (FPS) and CHAPS to reimburse victims of APP fraud, unless the victim was grossly negligent.
3. Cost Sharing: The costs of reimbursements will be shared equally between sending and receiving firms to encourage better fraud detection and prevention.
4. Payment Delays Legislation: PSPs can delay processing payments for up to four business days if fraud is suspected, allowing for a risk-based approach to payment processing.
5. Anti-Fraud Systems: PSPs must enhance their anti-fraud systems and controls, ensuring effective governance, ongoing monitoring, and customer due diligence to prevent fraud.
6. Consumer Duty: Firms must avoid causing foreseeable harm to consumers and must provide adequate support throughout the customer lifecycle, particularly in complaint handling.
7. Information Obligations: PSPs must inform customers about dispute resolution options, including access to the Financial Ombudsman Service.
8. ‘On Us’ Payments: The reimbursement policies apply only to external payments (FPS and CHAPS), and firms must ensure that customers understand any differences in protection levels for intra-firm payments.
9. Regulatory Monitoring: The FCA and PSR will monitor compliance with reimbursement requirements and data from PSPs to ensure effective consumer protection.
10. Communication Protocol: PSPs are reminded to notify regulators of significant changes promptly and can contact the FCA or PSR as needed for inquiries.

​
Overall, the letter underscores the regulatory framework aimed at enhancing consumer protection against APP fraud and the responsibilities of PSPs in this context.

Summary of the Emoney & Payments Dear CEO Letter:

The letter outlines the FCA's expectations for Payment Service Providers (PSPs) regarding Authorised Push Payment (APP) fraud reimbursement. Key points include:

1. Financial Crime Priority: The FCA highlights the significant societal harm caused by financial crime, including fraud, and emphasizes its commitment to reducing such activities.
   
2. Reimbursement Requirements: Starting October 7, 2024, PSPs using the Faster Payments System (FPS) and CHAPS must reimburse victims of APP fraud, unless the victim was involved in the fraud or acted with gross negligence.
   
3. Cost Sharing: The reimbursement costs will be shared equally between sending and receiving firms to encourage proactive fraud prevention.
   
4. Payment Delays: New regulations allow PSPs to delay payment processing by up to four business days if fraud is suspected, enabling a more thorough assessment of potentially fraudulent transactions.
   
5. Anti-Fraud Systems: PSPs must enhance their fraud detection systems, ensure effective governance, conduct regular reviews, and maintain strong customer due diligence measures.
   
6. Capital Management: Firms are urged to manage potential liabilities from fraud reimbursements, adjusting their business models accordingly.
   
7. Consumer Duty: Under the Consumer Duty, firms must prevent foreseeable harm to customers and must provide adequate support throughout the customer lifecycle, especially regarding complaints.
   
8. Information Obligations: PSPs are required to inform customers about alternative dispute resolution options, including access to the Financial Ombudsman Service.
   
9. ‘On Us’ Payments: Reimbursement policies apply only to external payments (FPS and CHAPS), and firms must clarify any differences in protection levels for intra-firm payments.
   
10. Regulatory Monitoring: The FCA and PSR will monitor compliance with reimbursement policies and gather data to ensure effective consumer protection.
    
11. Communication Protocol: PSPs must notify regulators promptly of significant changes and can contact the FCA or PSR for assistance.
    

Overall, the letter emphasizes the importance of consumer protection and the responsibilities of PSPs in combating APP fraud.

What is the difference between the two Dear CEO Letters?

The letter issued to Payments and Emoney Firms includes:

"Capital and liquidity PSPs should recognise and manage their potential liability and the impact this may have on their capital and liquidity. We expect PSPs to review and adjust their business models and transactions to mitigate against any risk of prudential impact that may result from potential APP fraud reimbursement liabilities."

The UK FCA seems far less concerned about the introduction of the new APP Fraud regime on banks/building societies than it is for payments and emoney firms.