Bitstamp is now a registered exchange with the FCA, joining Gemini and Archax on the list.

The Financial Conduct Authority (FCA) of the United Kingdom has given its approval for Bitstamp to become a registered crypto asset firm. This makes Bitstamp only the third company to receive a crypto exchange license from FCA, following in the footsteps of Gemini and Archax.

Bitstamp Secures FCA Approval

On June 13th, Bitstamp UK Limited was granted regulatory approval, as listed on FCA’s crypto register, along with Interactive Brokers Limited. As a result, Bitstamp can now offer its services to both retail and institutional customers in the UK. After obtaining the license, Bitstamp expressed its commitment to expanding its presence and investment in the UK market.

According to Jean-Baptiste Graftieaux, the CEO of Bitstamp, the company believes that regulation is necessary for the industry’s growth. He stated:

“We have always embraced regulatory efforts that focus on transparency and accountability to help expand the industry and bridge the gap with traditional finance.”

FCA Tightens Oversight of the Crypto Sector

Due to concerns about consumer protection, market integrity, and financial crimes, the FCA has increased its scrutiny of the crypto sector. In 2021, the financial watchdog asked Binance to halt its operations in the country. It also warned that many crypto firms were not registered with it and advised investors to avoid such firms.

More recently, the FCA mandated that all crypto firms in the UK must register by March 31, 2023, or cease operations. The regulator also extended a temporary registration regime for existing crypto firms with pending applications. Additionally, the FCA banned the sale of crypto derivatives to retail consumers. The regulator also revealed plans to place restrictions on crypto advertising and promotions.

Only three crypto exchanges – Gemini, Archax, and Bitstamp – have been fully registered by the FCA. Dozens of others remain on the temporary register or have withdrawn their applications. However, the UK government is not stopping its push for better regulations. Lawmakers are working on a comprehensive crypto asset regulatory framework that may give crypto a more prominent role in the financial services sector. After publishing the consultation paper on the framework in January, the public can expect a draft legislation later in the year.