• The revenue of the fintech industry in the UK grew sharply between 2018 and 2023, despite a notable decrease in 2022. In 2023, the estimated revenue of the industry was 3.37 billion U.S. dollars, most of it generated by the digital assets segment. According to Statista Market Insights, fintech revenue is forecast to grow gradually in the coming years, reaching 6.7 billion U.S. dollars in 2028.

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• According to Statista Market Insights, fintech revenue is forecast to grow gradually in the coming years, reaching 6.7 billion U.S. dollars in 2028.​

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Source: https://www.statista.com/forecasts/1443821/revenue-fintech-market-for-different-segments-united-kingdom

• "Across the spectrum of listed fintech businesses globally, there’s been an impressive bounce over the past 12 months. The KBW Nasdaq Fintech index is up 31 per cent over the past year, compared with a return of 25 per cent for the broader S&P 500. This index is tracked by a UK-listed ETF from Invesco with the ticker FTEK LON, though there are other index trackers in the fintech space including one from Global X — ticker FING — and another from Xtrackers which is based on the MSCI Fintech innovation index — ticker XFSN."

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• "One repercussion is that we may see more fintechs list on stock markets over the next year. UK-listed venture capital fund Chrysalis — one of my favourite investments at the moment — has a stake of about 1.1 per cent in Klarna, on a net asset value of $11bn, whereas the rumoured IPO price is closer to $20bn. Another key holding for the investment trust is insuretech business WeFox, which is showing signs of rapid growth."

Source: FT - read article here.  It is a very interesting article by David Stevenson, an active private investor. 

UK Fintech Sector Rebounds in Q1 2024, Attracting $1.4B in Investments

According to the latest report published by Dealroom and HSBC Innovation Banking, British startups garnered a total of $3.9 billion in funding during the first three months of 2024, with $1.4 billion directed towards the fintech sector.

"Among emerging frontier technology segments, semiconductors and quantum computing have been gaining momentum, for startups often based in science hubs like Cambridge and Oxford,” the report revealed. Challenger banks took the top spot, raising nearly $450 million in funding.
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Among the major deals, several late-stage funding rounds have been secured for prominent companies. Monzo, a digital challenger bank, garnered £340 million in a late-stage venture capital round, while Flagstone, a cash deposit platform, raised £108 million in a growth equity round.

These substantial funding rounds demonstrate investors' continued confidence in the UK's fintech ecosystem, despite the global economic challenges.

“With companies like Monzo leading the charge, Britain’s leadership in fintech has long been key to drawing in investment from around the world,” commented Saqib Bhatti, the UK's Technology Minister.

The results of this report stand in contrast to findings from other studies covered by Finance Magnates earlier this year. For instance, a report by Tracxn in January indicated that in 2023, UK fintech startups witnessed a decline of 63%, gathering only $4.2 billion compared to $11.2 billion in 2022. This downturn was confirmed by a report in February from KPMG, which noted that global fintech funding had reached a five-year low, falling to $113.7 billion.
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Market experts further forecast that AI will play an increasingly significant role in fintech. This was the topic of one of the recent panels during the Finance Magnates London Summit.

Most venture capital funding came from foreign investors (64%), with about one-third from domestic investors, marking a significant shift from a decade ago when local funds predominantly handled investments.

“This data reflects a busy start to the year for the UK innovation ecosystem,” commented Simon Bumfrey, the Head of Technology and Life Sciences at HSBC Innovation Banking UK. “From growth in investment in established and emerging areas like fintech and quantum computing to expansion of regional tech hubs across the length and breadth the country, there is much to celebrate.”

While London continues to lead in VC investments in the UK, gathering $2.4 billion in capital, the dynamics have shifted with a year-on-year decrease of 18%. However, substantial improvement in accumulated capital were noted in Cambridgeshire and Edinburgh, with increases of 59% and 406%, respectively.

Moreover, last month, Revolut, one of the largest British fintechs, warned that London's status as a financial technology hub is increasingly threatened due to rising external competition. Despite this, the company is still considering an IPO in London.
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Globally, the UK ranks third in startup investment, only behind the United States and China, while outpacing India.

Leaders of the UK's financial technology industry are urging the British government to increase tax relief and help them raise more investment, as some executives warn a shortage of domestic investors is holding back the sector.

Trade body Innovate Finance's "Unicorn Council", which includes the CEOs of Monzo, Revolut's UK arm and ClearBank, set out policy recommendations on Monday that it said would help the UK maintain its position as a fintech hub.

Global venture capital investments fell to a near five-year low in the first three months of 2024, according to data from PitchBook, as high interest rates dampened risk appetite.
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Fintech companies in the UK say there is not enough investment coming from UK-based investors in particular.

"There is a well-documented problem with capital supply in both the UK listed markets and private Growth Capital," the group's statement said.

“All of the investment across our biggest fintechs (is) all overseas. Where are the UK pension funds? Why isn’t that growth actually going into the pockets of the UK?" added ClearBank CEO Charles McManus, speaking at the Innovate Finance Global Summit (IFGS) conference held in London on Monday.

Innovate Finance CEO Janine Hirt told Reuters that there needs to be more domestic investment in fintech.

Source: https://www.reuters.com/world/uk/uk-fintechs-ask-government-help-ease-capital-shortages-2024-04-15/

​An arm of Standard Chartered, the FTSE-100 bank, is taking a stake in a British company set up with the objective of providing ethical financial products to customers.

City sources said that SCV, which is based in Singapore, was investing at least $10m (£8.02m) into Algbra, although neither the exact sum nor the resulting valuation could be ascertained.
As part of their collaboration, Algbra is understood to have agreed to use its core banking platform to build Shoal, a new digital venture announced in 2021 by Standard Chartered Bank to "give UK savers the power to help fund the fight against climate change".
Shoal was originally contracted to be built by Starling Bank, but will now see Algbra's technology deployed instead, according to one fintech insider.

Source: https://news.sky.com/story/standard-chartered-arm-takes-stake-in-british-fintech-algbra-13115431​

Did you know that the UK digital tech ecosystem is now valued at US$ 1 trillion; only the third country to pass this milestone after the US and China, offering a great environment for businesses to grow within the industry.

My personal thought is that what is good for fintech in the UK is good for Ireland's fintech industry too. You cannot conquer the continent of Europe if with regulated financial services unless you are authorised in the UK and a EU Member State. So, why not Ireland? With the UK, we share the common travel area, we both have a common law legal system, we both have highly educated workforces and we both have a pragmatic business ethos. Between the UK and Ireland, you have the continent of Europe in your palm! Something I will talk about on Tuesday next week at the Financial Crime Forum - "Why Ireland has proved so popular as a base for FinTech companies and how passporting helps expansion onto mainland Europe".

How's that for finding commonality between, at first, three very different topics in one post to save your feed being cluttered by three posts?​

Source: https://www.linkedin.com/posts/peteroakes_fintech-activity-7184221078116827136-IkfY

​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.

Don't forget to sign up to our Newsletter (we don't spam) by clicking here.  We use MailChimp, which means you can unsubscribe whenever you like.​

​Welcome to the version 9.0 of Fintech UK's and CompliReg's (a leading provider of fintech consulting services to crypto asset firms) UK FCA registered Cryptoasset Firms Map.

How many registered cryptoasset firms are there in the UK?

How many unregistered crypto firms appear on the FCA register?
There are now, as at 27 March 2024, 69 'unregistered cryptoasset firms according to the latest FCA records.  Now while this is steady since the publication of the Version 8.0 Map, two new companies now appear on the unregistered list, being:



The number of 69 unregistered firms is a significant reduction since the time we released Version 1 when there were 218 (thereabouts) unregistered cryptoasset business that appeared to the FCA to be carrying on cryptoasset activity but not registered with the FCA for anti-money laundering purposes.  

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.

Welcome to the version 8.0 of Fintech UK's and CompliReg's (a leading provider of fintech consulting services to crypto asset firms) UK FCA registered Cryptoasset Firms Map.

How many registered cryptoasset firms are there in the UK?

There are now 43 registered Cryptoasset firms appearing on the Financial Conduct Authority's (FCA) website as at 27th January 2024. The last firm registered was on 31 October 2023.  There have been no firms registered by the FCA since the start of 2024.

PayPal UK gets registered but has been ordered to cease on-boarding new customers and restrict existing customers

Joining Version 8.0 is PayPal UK Limited.  The FCA register records its registration effective 31st October 2023.  

While registered by the FCA, PayPal's UK crypto operations has been hit with a several restrictions.  It is prohibited, without permission from the FCA, to provide certain services to new and existing customers and specifically it has been ordered to cease on-boarding new customers and restrict existing customers to hold and sell functionality and further PayPal UK cannot expand its current offering in cryptoassets, including, but not limited to:

1. Operating a machine which utilised the automated process to exchange cryptoassets for money or money for cryptoassets.
2. Facilitating or participating in decentralised finance activities such as Cryptoasset lending and borrowing.
3. Facilitating the peer-to-peer exchange of cryptoassets.
4. Participating in staking.
5. Participating in initial coin offerings.

Two cryptoasset firms lost their registration in 2023

During 2023 two registered crypto lost their registrations:

(1) BottlePay Limited originally registered on 17 December 2021 which closed its app to UK customers on 24th July 2023; and
(2) Digivault Limited originally registered on 12 May 2021 which went into insolvency administration on 19 April 2023.   

How many unregistered crypto firms appear on the FCA register?
There are now, as at 27 January 2024, 69 'unregistered cryptoasset firms according to the latest FCA records, which is an increase from 64 from when we published the last of the Fintech UK Registered CryptoAsset Map.  Over time, some firms will disapper from the unregistered list and some will join it.

The six (6) firms that have been added to the FCA register to take the number to 69, include: WeBuyXMR-Alex; Alphachain Traders Limited; Alphachain Capital Limited; Lykke Corp UK Limited; BTC-Firm; and Ex Markets.   

The number of 69 unregistered firms is a significant reduction since the time we released Version 1 when there were 218 (thereabouts) unregistered cryptoasset business that appeared to the FCA to be carrying on cryptoasset activity but not registered with the FCA for anti-money laundering purposes.  

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.

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.

Don't forget to sign up to our Newsletter (we don't spam) by clicking here.  We use MailChimp, which means you can unsubscribe whenever you like.​

Welcome to the version 7.0 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 43 registered Cryptoasset firms appearing on the Financial Conduct Authority's (FCA) website as at 6th October 2023.  Joining Version 7.0 are three new entrants - Interactive Brokers (U.K.) Limited, Bitstamp UK Limited and Komainu UK Limited. The FCA register records their registrations effective 12th June, 13th June and 6th October 2023, respectively.  However, leaving the Map is BottlePay Limited which closed its app to UK customers on 24th July 2023.   

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 (10 October 2023), that number has decreased to 64.  It was 82 on 1st April 2023.  

The firms thus far registered by the FCA include:

2023: Interactive Brokers (U.K.) Limited, Bitstamp UK Limited and Komainu UK Limited

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,  Zodia Markets (UK) Limited, Foris DAX UK Ltd (aka Crypto.com), Revolut Ltd*, Tullett Preborn (Europe) Ltd, MoonPay (UK) Ltd and Hidden Road Partners CIV UK Ltd.

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 [closed July 2023], Genesis Custody Limited and Altalix Ltd. 

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

* Revolut group still has not achieved its much talked about ambition of securing a bank authorisation in the UK.  ​

We are looking forward to seeing how many more will be registered during the remainder of Quarter 3 2023 and in Quarter 4 too.  

The post accompanying Version 7 appears at:

• ​CompliReg: 
• Linkedin: https://www.linkedin.com/posts/peteroakes_cryptoasset-cryptoasset-cryptomap-activity-7117551129269268481--Tqs ​

The Treasury Committee today calls for consumer trading in unbacked crypto to be regulated as gambling.
In a new report, the cross-party Committee of MPs highlights that cryptocurrencies such as Bitcoin have no intrinsic value and serve no useful social purpose, while consuming large amounts of energy and being used by criminals in scams, fraud and money laundering.

• Read the full report (HTML)
• Read the full report (PDF)
• Read the report summary
• Find all publications related to this inquiry, including oral and written evidence

Unbacked cryptoassets – often called cryptocurrencies – are not supported by any underlying asset. They are the most prominent form of crypto, with Bitcoin and Ether alone accounting for two-thirds of all cryptoassets.

The Committee concludes that cryptocurrencies pose significant risks to consumers, given their price volatility and the risk of losses. Given retail trading in unbacked crypto more closely resembles gambling than a financial service, the MPs call on the Government to regulate it as such.
The Committee is also concerned that regulating consumer crypto trading as a financial service – as proposed by the Government – will create a ‘halo’ effect, leading consumers to believe this activity is safe and protected, when it is not.

Around 10 per cent of UK adults hold or have held cryptoassets, according to HM Revenue & Customs.
The MPs recognise that technologies underlying cryptoassets may bring benefits to financial services, particularly for cross-border transactions and payments in less developed countries, and call on the Government and regulators to keep pace with developments so potentially productive innovations are not unduly constrained.

Given the future benefits of crypto remain unclear, the Government should take a balanced approach to supporting the development of cryptoasset technologies and avoid spending public resources on projects without a clear, beneficial use, as appears to have been the case with its now-abandoned Royal Mint non-fungible token (NFT). It is not the Government’s role to promote particular technological innovations for their own sake.

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• Link to inquiry page 
• Link to Committee's home page 

Image credit: Pexels