This will allow the platform to provide crypto services to local customers

Fintech company Banxa is the first to be granted a crypto license in the UK in 2024

13.02.2024 - 15:10

111

1 min

What’s new? Fintech company Banxa, the British subsidiary of payment infrastructure provider Banxa (BNXA), has become the first company to join the UK Financial Conduct Authority’s (FCA) cryptocurrency register in 2024. The license will allow the platform to provide cryptocurrency services to local customers.

Information on the FCA website

What else is known? Crypto companies wishing to market their services to customers in the UK must either be registered with the FCA or obtain permission to conduct such activities from an authorized firm.

Firms must ensure that their advertising is clear and not misleading, as well as adequately informing consumers about the risks involved in investing.

Industry representatives said that complying with these requirements was difficult and costly. Crypto exchanges Binance and Bybit suspended operations in the country after they came into force.

In 2023, the FCA approved only 4 out of 28 applications from companies to be authorized to provide crypto services. Interactive Brokers, crypto exchange Bitstamp, crypto custodian Komainu, and payment company PayPal were granted licenses.

What is known about Banxa? The platform provides fiat payment processing services for customers of cryptocurrency exchanges, including Binance and OKX (neither of which has the FCA license), and handles identity verification and transactions.

In August, MetaMask wallet developers partnered with Banxa to launch an instant cryptocurrency purchase feature via Apple Pay.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy