Blockchain.com has successfully attained registration from the Financial Conduct Authority (FCA) in the UK, marking a pivotal moment for the company in the digital asset landscape. This achievement comes nearly four years after the firm retracted its initial application in March 2022, highlighting the lengthy regulatory journey involved.
The FCA”s inclusion of Blockchain.com on its official roster of licensed crypto firms signifies a major regulatory advancement for the platform, which is based in London. With this new status, Blockchain.com is now authorized to conduct operations within the strict frameworks of the UK”s anti-money laundering and counter-terrorism financing regulations. However, it is essential to note that the company still needs to adhere to the existing licensing regime for cryptocurrencies, which has yet to provide full financial services authorization.
Looking ahead, a broader regulatory framework is anticipated to be introduced by the close of 2024, setting the stage for a more comprehensive licensing regime. The recent FCA registration empowers Blockchain.com to function as a licensed crypto service provider, enabling it to offer brokerage, custodial, and institutional-grade services across the UK. The operational standards are now comparable to those enforced on conventional banks and financial institutions.
CEO Peter Smith emphasized the significance of this regulatory approval, asserting the firm”s commitment to maintaining strong ties with UK regulators. He conveyed Blockchain.com”s ambition to influence the development of the UK”s evolving digital asset regulations. In a recent update shared on X, the company noted its obligations to uphold rigorous benchmarks comparable to those expected of established financial entities.
Blockchain.com is also laying plans to pursue a full financial services license once the UK”s new regulatory framework is established in 2027. This strategic move is viewed as critical for solidifying its presence in the UK market and expanding its reach across broader European markets, leveraging its existing MiCA license within the European Economic Area.
The recent FCA clearance aligns with Blockchain.com”s prior regulatory successes in Europe, where the MiCA authorization allows it to cater to clients across the EEA. This dual licensing framework will facilitate enhanced cross-border expansion and service integration for both institutional and retail clients.
In the UK, the FCA registration enables Blockchain.com to scale up its offerings, including digital asset custody, crypto wallets, and advanced brokerage solutions. Furthermore, it positions the firm to establish stronger partnerships with local banks and other regulated financial organizations that seek collaborators operating under familiar compliance standards.
Co-founder Nic Cary characterized the FCA registration as a critical milestone in Blockchain.com”s long-term objective to operate within established regulatory frameworks. He highlighted the company”s commitment to compliance and its institutional-grade infrastructure, all while navigating an evolving policy landscape in the UK as it transitions to a more extensive licensing structure by 2027.
In conclusion, Blockchain.com”s recent FCA registration, alongside its MiCA license in Europe, significantly enhances its regulatory standing, facilitating the expansion of compliant crypto brokerage, custody, and institutional services within both the UK and the wider EEA.
