Zodia Markets, a crypto exchanger and brokerage catering to institutional investors, has been registered as a crypto platform with the UK Financial Conduct Authority (FCA) and officially launched its crypto trading business.
In the UK, a crypto exchange must be registered with the FCA to provide services. Since January 10, 2020, crypto platforms’ operations needed to be compliant with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations. Crypto platforms needed to be registered with the FCA as of January 9, 2021, to continue to carry on business. The FCA’s remit is limited to AML/CTF registration supervision and enforcement only.
Zodia Markets is backed by Standard Chartered.
Usman Ahmad, Zodia Markets CEO, commented on the registration:
“Whilst the digital asset markets have recently seen volatility and downward pressure, adoption continues unabated, with institutions entering the market at rapid pace. At Zodia Markets, our mission is to be the most trusted trading partner for institutional participants as they navigate this rapidly evolving asset class. With our hugely experienced team of professionals from both digital asset and traditional finance backgrounds, and by providing the highest standards of security, risk and compliance integrated from inception, we meet the demands of institutions seeking a credible and reliable trading partner for cryptoassets. The FCA registration is a testament to our commitment to the highest standards of compliance.”
Zodia Markets was established in June 2021 as a partnership between SC Ventures, the VC arm of Standard Chartered, and BC Technology Group (stock code: 863 HK), an Asian digital asset company and parent of Hong Kong Securities and Futures Commission (SFC)-licensed digital-asset platform, OSL.
Alex Manson, Head of SC Ventures, explained that by combining OSL’s expertise in operating regulatory-compliant digital asset businesses with the bank’s governance, regulatory oversight, Zodia Markets is in a prime position to provide compliant access to digital assets for an institutional client base.
Zodia Markets’ exchange is said to provide the same standards as electronic trading for traditional equities, FX or fixed income. Zodia Markets partners with third-party custodians, including Standard Chartered-backed Zodia Custody, to support its trading activities, providing clearly segregated responsibilities.