Bitget resumes UK operations after complying with cryptocurrency regulations – FinanceFeeds

Cryptocurrency exchange Bitget has confirmed that it has resumed operations in the UK and reopened its UK website in accordance with the country’s financial promotion regulations.

The exchange restricted access to the UK in June 2024 to meet the requirements of the Financial Conduct Authority’s (FCA) new Financial Promotion (FinProm) regime. According to Bitget, its UK platform currently hosts more than 1,000 tokens, which is more than double the number of tokens offered by other local exchanges.

The relaunch was made possible by the approval of Archax, an FCA-authorized firm specializing in financial promotion compliance. Archax’s approval allows Bitget to offer a wide range of crypto services to UK users, including trading and custody of various crypto assets, as well as tokenized real-world assets.

BitGet CEO Gracie Chen said the company’s return to the UK market under the FinProm framework will allow it to offer users a wider choice of digital assets in line with regulatory guidelines.

Interestingly, this news comes shortly after the FCA reported that 87% of cryptocurrency companies that applied for a license under the country’s money laundering regulations failed to receive approval in the latest financial year.

According to the FCA’s annual report, out of 35 applications received in the month to March 12, just 31 qualified.

Successful applicants include Binance’s payment partner BNXA, PayPal’s UK arm, and crypto asset custody joint venture Comainu. Nomura’s remaining applications were denied or withdrawn due to missing required elements.

Since the FCA took on the role of overseeing crypto companies under anti-money laundering regulations in 2020, it has received 359 applications, but has granted money laundering registrations to just 44 companies.

Difficult registration procedures have led some cryptocurrency companies to leave the UK. They are looking for easier registration procedures elsewhere. Complaints include long wait times, lack of feedback, and what they say is unfair treatment by regulators.

FCA’s new rules will require crypto companies to ensure their marketing is “clear, fair and not misleading”, include prominent risk warnings and eliminate incentives such as “refer a friend” bonuses is requesting that you do so. A 24-hour cooling-off period for new investors and strict advertising guidelines are also part of the regulations.

The new regulations will also require companies promoting crypto products or services to include clear risk warnings in their promotions and ensure that individuals have the necessary knowledge and experience to invest in cryptocurrencies. Violations can result in penalties including up to two years in prison.

The impact of these regulations is already being felt in the UK crypto market, with companies such as: Bybit and PayPal Discontinuation of certain services. Luno, another prominent cryptocurrency company, is restricting some customers from investing in cryptocurrencies on its platform.