1. Home
  2. financial conduct authority

financial conduct authority

FCA Secures First Conviction for Illegal Crypto ATM Operation in UK

FCA Secures First Conviction for Illegal Crypto ATM Operation in UKOlumide Osunkoya has pleaded guilty to illegally running a crypto ATM network across the UK. Even though the UK Financial Conduct Authority (FCA) denied his registration, his operation handled millions in cryptocurrency transactions. This case represents the first conviction of its type under the UK’s anti-money laundering laws. UK’s First Illegal Crypto ATM Conviction Unveiled […]

Trader Highly Bullish on Altcoin That’s Up Over 1,100% in Under a Month, Updates Outlook on Bitcoin and Ethereum

UK Regulators Release Guidance for ‘Finfluencers’ and Memes Promoting Financial Products

UK Regulators Release Guidance for ‘Finfluencers’ and Memes Promoting Financial Products

Regulators in the United Kingdom are releasing new regulations for influencers and memes that promote financial products. In a new press release, the UK’s Financial Conduct Authority (FCA) is giving out new guidelines on how social media can be used to promote financial products, including fintech and digital assets, as a means of combating fraud. […]

The post UK Regulators Release Guidance for ‘Finfluencers’ and Memes Promoting Financial Products appeared first on The Daily Hodl.

Trader Highly Bullish on Altcoin That’s Up Over 1,100% in Under a Month, Updates Outlook on Bitcoin and Ethereum

UK Regulators Greenlight Crypto-Based Exchange Traded Notes (ETNs) As Bitcoin Hits New All-Time High

UK Regulators Greenlight Crypto-Based Exchange Traded Notes (ETNs) As Bitcoin Hits New All-Time High

Financial regulators in the United Kingdom are allowing applications for crypto-based exchange-traded notes (ETNs), according to a new announcement. In a Monday press release, Britain’s Financial Conduct Authority (FCA) said that it has approved the sale of crypto and Bitcoin (BTC) ETNs for professional investors. ETNs in the UK are defined as bonds issued by […]

The post UK Regulators Greenlight Crypto-Based Exchange Traded Notes (ETNs) As Bitcoin Hits New All-Time High appeared first on The Daily Hodl.

Trader Highly Bullish on Altcoin That’s Up Over 1,100% in Under a Month, Updates Outlook on Bitcoin and Ethereum

UK FCA crypto skills gap is causing slow enforcement, says National Audit Office

The National Audit Office emphasized that it took nearly three years for the UK Financial Conduct Authority to address illicit activity in crypto ATMs across the country.

The National Audit Office (NAO) in the United Kingdom has raised concerns about the effectiveness of the Financial Conduct Authority (FCA) in regulating the cryptocurrency industry.

In a recent report titled 'Financial services regulation: adapting to change,' the NAO has claimed that the FCA is being slow to respond and take action against illicit activities in the crypto industry.

The NAO asserts that the delay in registering crypto firms seeking regulatory approval from the FCA was attributed to the absence of specialized crypto personnel.

Read more

Trader Highly Bullish on Altcoin That’s Up Over 1,100% in Under a Month, Updates Outlook on Bitcoin and Ethereum

UK regulator advocates for asset managers to tokenize funds

The United Kingdom's financial regulator has endorsed a blueprint model designed to facilitate the tokenization of funds for asset management firms.

Investment managers in the United Kingdom are receiving regulatory support to leverage blockchain technology for the tokenization of funds, breaking away from conventional record-keeping systems.

In a recent report published by The Investment Association (IA), it argued that fund tokenization – issuing tokenized units or shares on distributed ledger technology (DLT) – will lead to a more efficient and transparent financial industry. 

In particular, the use of a real-time record keeping system shared across all parties servicing the fund will reduce the fund administration costs, simplify the reconciliation process, as well as allow quicker settlement times. 

Sarah Pritchard, executive director of markets and international at the Financial Conduct Authority (FCA), emphasized that while the regulator is open to exploring innovative avenues for asset managers, it must also delineate the potential risks:

“This is an exciting milestone and paves the way for exploring more transformative use cases in the future. We want to support firms to implement technological solutions which enhance and strengthen the UK’s asset management industry, while addressing risks and potential harms.”

Meanwhile, the report proposed certain principles for implementing tokenized funds

These principles include ensuring relevance to both domestic and international investors and avoiding anarrow focus solely on the investment asset manager industry.

“Offer opportunities to the widest possible range of firms across the sector, rather than focusing on any specific type of firm, product type, asset class, or customer group,” the report noted. 

Furthermore, it articulated the need for an accompanying roadmap for delivery and a focus on competitiveness and efficiency within the sector.

Timeline of implementing fund tokenization. Source: The Investment Association

The fund would have to be established in the UK, and be FCA authorized, along with having to adhere to traditional financial industry standards. It further stated that the legal and regulatory rules would remain the same. 

In a separate statement, the UK government reiterated its support for the blueprint model, declaring its commitment to improving innovative approaches within the nation:

“The government warmly welcomes this publication. It will advance the wider conversation on the role of technology in asset management, and signals that the UK is welcoming of innovation and open for the exciting new business of the future.”

Related: Token adoption grows as real-world assets move on-chain

This follows recent news that investment firms in the UK have been strengthening their staff dedicated to digital assets.

On September 10, Cointelegraph reported that one-quarter of asset managers and hedge funds in the U.S., UK, and Europe have recruited senior executives to oversee digital asset strategies.

According to a survey, 24% of asset management firms adopted a digital assets strategy, with an extra 13% planning to do so in the next two years.

Magazine:This is your brain on crypto: Substance abuse grows among crypto traders

Trader Highly Bullish on Altcoin That’s Up Over 1,100% in Under a Month, Updates Outlook on Bitcoin and Ethereum

Crypto Memes and ‘Finfluencers’ To Be Targeted by Regulators in UK As New Rules Kick In

Crypto Memes and ‘Finfluencers’ To Be Targeted by Regulators in UK As New Rules Kick In

Lawmakers in the UK are now targeting crypto memes and fintech influencers in an effort to enforce new social media guidelines. According to a new press release by the nation’s Financial Conduct Authority (FCA), the regulatory agency will be cracking down on illicit and non-compliant financial promotion starting in October. “The FCA has been ramping […]

The post Crypto Memes and ‘Finfluencers’ To Be Targeted by Regulators in UK As New Rules Kick In appeared first on The Daily Hodl.

Trader Highly Bullish on Altcoin That’s Up Over 1,100% in Under a Month, Updates Outlook on Bitcoin and Ethereum

a16z opening London crypto office citing ‘predictable’ environment

The expansion came following a “productive dialogue” with the United Kingdom’s prime minister and “months of constructive conversations” with U.K. policymakers, a16z’s general partner said.

Venture capital firm Andreessen Horowitz (a16z) is set to open its first office outside of the United States this year, adding to the backdrop of U.S.-based firms seeking greener pastures outside of the country.

Chris Dixon, a16z’s crypto founder and managing partner, cited a “predictable business environment” as one of the main factors behind its decision to expand. The move comes amid a slew of regulatory actions against crypto firms in the United States in recent months.

Dixon said the decision was finalized after a “productive dialogue” with the U.K. prime minister in addition to “months of constructive conversations” with HM Treasury, U.K. policymakers, and the Financial Conduct Authority. He added:

“We’re thrilled to open our first international office in a jurisdiction that welcomes blockchain technology and is committed to creating a predictable business environment by pursuing regulations that both embrace web3 and protect consumers.”

However, Dixon said the firm remains “heavily invested” in the U.S., and will continue to work with policymakers and regulators to push for more regulatory clarity for crypto start ups.

Rishi Sunak — the U.K.’s new pro-crypto prime minister — attributed the news of a16z’s expansion to having the “right regulation and guardrails” set in place to “foster innovation” while still protecting consumers.

Sunak said he was “thrilled” with a16z’s decision:

“That’s why I am thrilled world-leading investor, Andreessen Horowitz, has decided to open their first international office in the UK – which is testament to our world-class universities and talent and our strong competitive business environment.”

In addition to the new office, a16z has also announced its plan to launch a new “Crypto Startup School” (CSS) program in London in the spring (March to June) of 2024.

The CSS accelerator program will aim to attract U.K. and international entrepreneurs keen on forging a career in Web3.

The most recent CSS program received more than 8,000 applicants, with 26 companies receiving an investment from a16z.

The U.K. office will also “work closely with universities” in the U.K. to “provide talent and support” for blockchain-based clubs and to encourage blockchain technology to be taught more in the classroom.

Related: a16z releases anonymous voting system for Ethereum

General Partner Sriram Krishnan will be in charge of the new office in London.

Andreessen Horowitz is the largest venture capital firm in the world, with over $35.8 billion in assets under management (AUM), according to the Sovereign Wealth Fund Institute.

On June 11, a16z led a $43 million Series A fundraise for London-based Gensyn, a blockchain-based marketplace connecting buyers and sellers of computing power.

Some of a16z’s most notable investments in the cryptocurrency space include Coinbase, Avalanche, Compound, Dapper Labs, Matter Labs, OpenSea, Optimism, PROOF, Solana, Uniswap and Yuga Labs.

Cointelegraph reached out to a16z for comment but did not receive an immediate response.

Magazine: Best and worst countries for crypto taxes — Plus crypto tax tips

Trader Highly Bullish on Altcoin That’s Up Over 1,100% in Under a Month, Updates Outlook on Bitcoin and Ethereum

UK financial watchdog to crypto industry: ‘Let’s work together’

The Financial Conduct Authority wants input from crypto companies on moving forward with regulations.

The United Kingdom's financial regulator, the Financial Conduct Authority (FCA), wants to work together with crypto companies to develop a regulatory framework for the industry.

On April 25, FCA Executive Director Sarah Pritchard spoke at London’s City Week conference highlighting the need for cooperation on crypto regulations.

“We want industry’s input to make sure we get the future regulatory regime for crypto assets right,” she said.

“Let’s work together, to shape our rules and regulations to benefit markets, consumers and firms as crypto goes from niche to mainstream.”

She referred to crypto as a “one-time symbol of alternative rebellion,” but acknowledged that it has “become more widespread.”

“Effective early engagement supports regulations that benefit all and helps firms be prepared when regulations come into force,” she added.

Pritchard mentioned a warning issued by the FCA to crypto investors a week before the FTX collapse in early November but added, “we have always been open to innovation,” stating:

“Crypto assets and blockchain offers opportunities for more efficient and innovative financial services and products.”

The move is in stark contrast to the approach across the pond in the United States. Those in the crypto industry in America claim local financial regulators are making every effort to quash the crypto sector with enforcement actions as opposed to developing meaningful regulations in collaboration with industry leaders.

Pritchard noted the FCA’s responsibilities are limited to making sure that crypto firms that operate in the U.K. comply with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) legislation.

“Only when the government legislates will we have more powers to regulate crypto,” she added.

Related: UK’s FCA hints at why it’s only given 15% of crypto firms the regulatory nod

According to Pritchard, the FCA has supported crypto firms and has registered 41 companies of all sizes, however, nearly three-quarters of the 195 total registrations from overseas firms were rejected or withdrew their applications for a U.K. license.

Pritchard also mentioned that “tangible change” will come in the form of legislation for crypto promotions and advertising high-risk investments. Current advertising rules carryheavy punishments for companies that breach them.

“This will come into our remit once the government legislates, and firms will have four months to implement the changes,” she said. “The rules will be published after the legislation is put forward.”

The FCA has also been working closely with the government on its proposals to regulate stablecoins, Pritchard noted.

In early March, FCA officials told the government that crypto regulations were inevitable. The regulator is trying to push through the Financial Services and Markets Act which was introduced in July and amended in October to include crypto regulations.

Magazine: Crypto winter can take a toll on hodlers’ mental health

Trader Highly Bullish on Altcoin That’s Up Over 1,100% in Under a Month, Updates Outlook on Bitcoin and Ethereum

UK uses Love Island star to warn finfluencers on crypto and investment schemes

The financial and advertising regulators posted a seven-part checklist to ensure these social media stars stay within the bounds of the law.

The financial and advertising regulators of the United Kingdom have teamed up to send a warning to social media “finfluencers” telling them to stop promoting illegal “get rich quick” schemes or face law enforcement.

The Financial Conduct Authority (FCA) and the Advertising Standards Authority (ACA) made reference to cryptocurrencies and nonfungible tokens in their April 6 statement, which laid out a seven-part checklist to ensure that finfluencers stay within the bounds of the law.

The checklist asks finfluencers to consider whether they’re the “right person” to be promoting the financial product and states that their followers may “lose all their money” from the investment. It also states:

“Don’t suggest to your followers that cryptoassets would be an easy investment decision or create any sense of urgency or FOMO.”
A seven-part checklist aims to provide “finfluencers” with more clarity over what may constitute an illegal financial promotion. Source: FCA

In addition to conducting “due diligence,” social media influences should seek approval of the FCA and ensure that the advertisement is legal, truthful and properly labeled as an advertisement under ASA rules.

The FCA and ACA strongly advised that influencers check ScamSmart to ensure that they’re not promoting an investment scam. “If in doubt, don’t promote”, the checklist’s slogan states.

It is a crime to unlawfully promote financial products or services which carries a maximum sentence of two years’ imprisonment and an unlimited fine:

“If your post breaks the rules, the ASA will take action.”

Sarah Pritchard, the FCA’s executive director, explained that there has been a spike in illegal financial promotions of late.

“They are often doing this without knowledge of the rules and without understanding of the harm they could cause their followers,” she added.

The FCA and ASA partnered with former U.K. Love Island contestant Sharon Gaffka to emphasize the risks that come with lucrative marketing schemes.

The FCA will also host an “open roundtable discussion” with influencer agents and the Influencer Marketing Trade Body in the coming months.

Related: Celebs who got burned endorsing crypto and those that got away with it

Across the channel, France is edging closer to banning French social media influencers from promoting cryptocurrencies and NFTs from unlicensed firms after the National Assembly’s economic committee voted in favor of an amendment proposal on March 23.

If passed, the new law would add crypto assets to a list of prohibited products, such as gambling and pharmaceuticals, that cannot be promoted by influencers.

Those found to violate the incoming law may also be subject to two years’ imprisonment with a fine of 30,000 Euros ($32,300).

Reality TV star Kim Kardashian, boxing legend Floyd Mayweather and internet celebrity Jake Paul are some of the most notable figures to have found themselves embroiled in allegedly promoting crypto investment schemes.

Magazine: Crypto Twitter Hall of Flame: Lark Davis on fighting social media storms, and why he’s an ETH bull: Hall of Flame

Trader Highly Bullish on Altcoin That’s Up Over 1,100% in Under a Month, Updates Outlook on Bitcoin and Ethereum

Rwanda Government Orders Banks to Stop Facilitating Crypto-Related Transactions

Rwanda Government Orders Banks to Stop Facilitating Crypto-Related TransactionsAccording to the National Bank of Rwanda, the country’s regulated financial services providers are now prohibited from facilitating crypto-related transactions. In her Jan. 31 letter justifying the decision, the acting governor Soraya Hakuziyaremye cites the unregulated status of most crypto assets and how this leaves users without the “guarantees and safeguards associated with regulated financial […]

Trader Highly Bullish on Altcoin That’s Up Over 1,100% in Under a Month, Updates Outlook on Bitcoin and Ethereum