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.
​
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.

​

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

Image credit: Pexels

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 6.0)!
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 6.0 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 41 registered Cryptoasset firms appearing on the Financial Conduct Authority's (FCA) website as at Saturday 31st December 2022.  Joining Version 6.0 are three new entrants - Tullett Preborn (Europe) Ltd, MoonPay (UK) Ltd and Hidden Road Partners CIV UK Ltd.    The FCA register records their registrations effective 21st November, 9th December and 20 December 2022, respectively.

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 (01 April 2023), that number has decreased to 82.  

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,  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.

* 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 2023.  Thus far, there have been no registrations in 2023.

The post accompanying Version 6 appears at:

• ​CompliReg: https://complireg.com/blogs--insights/tullett-prebon-moonpay-and-hiddenroad-join-fintech-uks-whos-who-of-uk-registered-cryptoasset-map-version-60-saturday-1st-april-2023​
• Linkedin: https://www.linkedin.com/posts/peteroakes_cryptoasset-cryptomap-cryptofirms-activity-7048281954894368768-VbNC?utm_source=share&utm_medium=member_desktop

​
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 

Version 3 of the Map and the Blog of 28 July 2022 - located here

Version 4 of the Map and the Blog of 20 September 2022 - located here

Version 5 of the Map and the Blog of 26 September 2022 - located here

List of ​Unregistered Cryptoasset Businesses as of today - located here

Postscript - Letter issued by UK FCA on 5 April 2023 to UK and overseas cryptoasset firms on financial promotion rules - located here

Armstrong Teasdale has welcomed consultant Peter Oakes to its fintech practice.

Former central banker and fintech practitioner Oakes is the founder of Fintech UK, Fintech Ireland, USTechFin and other geographically focused fintech groups. 

An international keynote speaker and media commentator, Oakes has presented to more than 10,000 professionals at events on various topics including corporate governance, regulation, regulatory risk, fintech and financial services. In addition, he is non-executive director of several innovative regulated fintech businesses including Susquehanna International (MiFID), TransferMate (payments institution) and Optal Financial Europe (e-money institution) and is Chairman of AWM Wealth Advisers (MiFID). He has assisted numerous fintech and regulatory technology businesses located in Australia, Ireland, U.K. and U.S. through serving on their advisory boards.

Oakes has previously held senior roles with the Central Bank of Ireland (Director, Enforcement & Financial Crime), U.K. Financial Services Authority (Enforcement Lawyer), the Australian Securities and Investments Commission (Senior Officer) and the Saudi Arabian Monetary Authority (Adviser to Governor and Deputy Governor, Banking Supervision).

Read more:

• https://www.lawgazette.co.uk/movers/firm-hire-fintech-uk-founder-joins-armstrong-teasdale/5115168.article
• https://www.armstrongteasdale.com/news/consultant-peter-oakes-joins-armstrong-teasdale/ 
• ​Fintech UK
• Fintech Ireland
• USTechFin

​At launch event CFIT will announce new coalitions of experts from across finance, technology, academia and policy-making. They will focus on helping fintechs achieve truly global scale, building on the UK’s recent success which saw the UK grow from two ‘unicorn’ firms (over $1 billion valuation) in 2020, to today where we have more than 20 – almost half of all the fintech unicorns in Europe.

CFIT will announce the establishment of financial innovation hubs with comprehensive reach across the UK’s nations and regions – including in key growth centres such as Leeds. The city has seen enormous fintech growth since 2020, with its number of fintech firms more than doubling to 107, and valuation of firms doubling to reach £710 million – supporting over 7,500 jobs.

CFIT’s Chair Charlotte Crosswell will also announce a range of new partnerships she and her team have agreed to support CFIT’s growth ambitions. Further details on these new partnerships, and which areas will be established as innovation hubs will be set out at the event.

Ahead of the launch, the Economic Secretary, Andrew Griffith MP, will be visiting the UK Infrastructure Bank’s (UKIB) site in Leeds, where he will officially open expanded office space for UKIB staff, as they gear up to take on around 280 staff. The Bank currently has around 180 staff, with an increasing number of permanent employees.

Since its introduction 20 months ago, the bank has announced ten significant investments in sectors ranging from solar energy to fibre broadband, and has crowded in £4.6 billion of private finance in the process.

The City of London Corporation Policy Chairman, Chris Hayward, said:

• The UK’s fintech sector is a true British success story. The launch of the Centre for Finance, Innovation and Technology (CFIT) today will help to maintain our dominant position globally. I look forward to continuing to work in partnership with CFIT to further unleash the potential of this sector.

UK Infrastructure Bank CEO, John Flint said:

• The fact we are anchored in Leeds is a key part of our identity. It aligns with our mission to drive up regional and local economic growth. It also makes us part of a growing movement, with many other significant organisations – for example, Channel 4, the Financial Conduct Authority, and the National Infrastructure Commission – establishing or expanding bases here. I am grateful to the Minister for helping us to mark this milestone, as we expand our presence in the city.

Today’s announcements deliver on the Chancellor’s ambition for the UK to become a technology superpower, as set out recently in his Bloomberg speech. And they deliver on the Prime Minister’s five priorities, helping to grow the economy.

Further information:

• Chancellor’s Bloomberg speech
• The Kalifa Review of UK fintech
• Whitecap consulting report on Leeds fintech
• Innovative Finance report on fintech investment