Banxa’s UK arm has become the pioneer to enlist in the Financial Conduct Authority’s (FCA) crypto register for the year 2024.
This listing authorises BNXA UK VASP to provide crypto-related services to customers within the United Kingdom.
Brinda Paul, the General Manager of the company, previously served as the Director of Compliance at Banxa, headquartered in Melbourne, Australia, which is known for its presence on the Toronto Stock Exchange.
Banxa offers fiat-processing services to clients of various cryptocurrency exchanges, including Binance and OKX.
Despite its ties with these exchanges, it is noteworthy that neither Binance nor OKX holds FCA approval for their crypto activities.
One crucial implication of FCA registration concerns promotional activities aimed at UK customers.
Companies intending to promote their services to UK-based clients must either register with the FCA or obtain approval for their promotions through an authorised entity.
However, it is important to note that registration alone does not grant firms the authority to approve promotional content issued by others.
In response to regulatory requirements, some unregistered firms have had to review their operations, resulting in the cessation of services for specific clientele.
For example, Binance decided to stop accepting new UK clients and encountered difficulties in finding eligible firms to endorse its advertisements.
The FCA has updated its guidance for cryptoasset firms in light of recent legislative changes.
These changes bring crypto promotions targeting UK consumers under the FCA’s oversight, with the aim of enhancing consumer understanding of crypto investments and associated risks.
When the regulations came into effect, over 200 crypto firms were found to be non-compliant with the basic requirements.
The FCA’s guidance, developed through industry consultation, helps firms comply with updated marketing regulations in the evolving regulatory environment.
Lucy Castledine, the FCA’s Director of Consumer Investments, emphasised the alignment of the new crypto marketing rules with other high-risk investments.
The FCA incorporated industry feedback to refine the rules and accompanying guidance during the consultation phase.