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Kraken's UK subsidiary has obtained the FCA business license


Kraken's London-based subsidiary Crypto Facilities has become the first company to obtain a business license from the UK regulator, the Financial Conduct Authority (FCA).

According Financial News On Monday (July 6, 2020), the Multilateral Trading Center (MTF) license will allow the crypto futures platform to offer its derivatives market to institutional investors.

Timo Schlaefer, CEO of Crypto Facilities, stated that it took the cryptocurrency company close to two years to get FCA approval. Schlaefer further said that the UK's financial regulation was comprehensive during the process.

Commenting on the importance of the license , Schlaefer said:

“Traditional trading companies may have negotiated with Crypto Facilities before, but they may have internal compliance requirements that limit them to operating in regulated trading venues. Often times, if an exchange gets some kind of payment license, they advertise it as if they were later regulated. "

With the MTF license, Crypto Facilities becomes the first licensed crypto derivatives platform in Europe. Kraken, one of the top U.S.-based crypto exchanges, acquired Crypto Facilities in 2019, for $ 100 million.

While Kraken's subsidiary gets first place with the FCA, the crypto exchange giant and regulatory regulator have had a fight lately. In early 2020, the FCA was blacklisted to clean up the market. Kraken was affected, as the financial regulator stated that the cryptocurrency exchange was not licensed to operate in the country.

However, the exchange quickly reacted to the warning, with CEO Jesse Powell claiming that the company had full FCA authorization. The regulatory body then withdrew its warning.

The FCA is interested in continuing to monitor the cryptocurrency sector

The UK financial regulator has been active in the cryptocurrency sector, issuing several warnings to the public about cryptocurrency investment scams and unlicensed platforms.

In 2019, the FCA announced its intention to ban the sale of various crypto derivative products to retail investors. According to the FCA, such a ban could help protect investors from the volatile nature of cryptocurrencies. However, this decision was met with strong opposition from stakeholders in the cryptocurrency industry.

In addition, in June 2020, the regulator requested cryptocurrency platforms operating in the UK to submit applications by June 30, 2020. Any company that is not registered with the financial regulator by June 2021 will cease to exist. Earlier this year, the FCA became the Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Monitor for companies engaging in cryptocurrency-related activities.

As recently reported, An FCA study published in June 2020 revealed that there has been an increase in cryptocurrency awareness among UK citizens. According to the report, only 27% of the population has never heard of cryptocurrencies.

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