One of the “longest-running” crypto exchanges, CoinJar UK Limited has been “officially registered” by the Financial Conduct Authority (FCA) as “a Cryptoasset Exchange Provider and Custodian Wallet Provider.”
As mentioned in an update shared with CI:
“In January 2020, new regulatory powers were introduced to allow the FCA to supervise how UK cryptoasset businesses manage the risk of money laundering and counter-terrorist financing. Now these businesses must be registered and comply with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).”
Although over 150 firms had submitted applications for the Temporary Registration Regime, CoinJar is pleased to be “one of the first crypto exchanges” to be officially registered with the FCA.
Based in London’s Canary Wharf, CoinJar has structured its UK division to address its compliance obligations, which includes appointing a UK Money Laundering Reporting Officer (MLRO), and other compliance professionals.
Asher Tan, CEO at CoinJar noted that they are “a long-established, highly regarded crypto exchange, so we are very pleased to have this official recognition by the FCA and to be one of the first to have received it.”
“As a business that embraces regulation and innovation in equal measure, the establishment of a clear regulatory framework from the FCA gives CoinJar long-term operating certainty in the UK, benefitting our investors and company partners.”
In a sign of the rising adoption of digital currency, approximately 2.3 million UK adults currently hold crypto-assets, an increase of 400,000 since 2020.
Tan further noted:
“As the UK cryptocurrency market expands and matures, we can offer people a positive experience of buying, selling and trading digital currency. Alarmingly, there are still few legal crypto options here and far too many people are having bad experiences with shady companies that have no chance of ever being regulated.”
He added that the FCA has stated that “a significant number of businesses aren’t meeting the money laundering regulations and an unprecedented number of companies have withdrawn their applications.”
Under the updated regulatory framework, any investor is able to “check the FCA’s public register to ensure that a crypto company is operating legally.” There are three steps to determine/verify a firm’s licensing status:
- Step 1: “Check if the firm is on the Financial Conduct Authority Register or list of firms with temporary registration.”
- Step 2: “If they aren’t on the FCA Register, ask them if they are allowed to carry on business without being registered.”
- Step 3: “If they aren’t allowed to carry on business, the FCA suggest withdrawing your crypto assets and/or money, as the firm is now operating illegally.”
CoinJar, which was founded in Australia, will be introducing several products in the United Kingdom in 2021 including a white label service for companies to offer backend virtual currency processing, and the CoinJar Card Mastercard, which lets customers spend their crypto “like cash, online and in-store.”
Since launching operations in London, Coinjar has “signed a sponsorship agreement with Brentford Football Club, who are playing in the Premier League for the first time this year.” This is in addition to their partnership “with Aussie Rules footy premiership contenders, the Melbourne Demons, who coincidentally are enjoying their best season in years.”