Gemini Exchange becomes the first exchange which is registered with the FCA
Regulators in the U.K. have
amended the nation’s anti-money laundering rules earlier this year with the European Union’s fifth AML Directive (AMLD5). As per the new regulations, any cryptocurrency-based businesses have to be registered with U.K’s Financial Conduct Authority by January 2021.
The U.K. branch of U.S. –based crypto exchange Gemini is one of the first crypto exchanges to be registered with the FCA under the updated directive that requires crypto entities to be registered before performing any activities related to crypto-assets.
Gemini exchange 's news comes hours after the FCA approved Archax, an upcoming digital securities exchange in the nation, making it the first crypto business registered under the new directive.
As of now Gemini’s U.K arm, Gemini Europe Limited has been listed on FCA’s register, but the exact date for the firm’s registration hasn’t been mentioned yet. On the other hand, Archax's approval status came into effect on August 18, according to the register.
Archax had reported that the approval process was “tough”. Gemini is supposedly enhancing its surveillance tools as a Bloomberg report noted that the Gemini Trust Co. had hired Eventus Systems Inc. to provide anti-market manipulation tools.
U.K. tightening up crypto regulations
According to the FCA, the review process takes months; therefore June 30th was the last date for existing crypto businesses to apply for a priority review.
As a part of the process, applicants are required to present a detailed report on how they plan on complying with AML regulations, providing information on a range of topics such as their company goals, governance models, staff, clients, projections.
Any businesses that fail to register with the FCA in by January 2021 would have to stop operating in the U.K.
“Any businesses that started carrying on business in the UK immediately before 10 January 2020 and are not registered by the FCA by the 10 January 2021 deadline will have to cease carrying on business.”
The FCA will be actively monitoring if crypto entities are following the updated rules, and will be taking swift action in case of failure to comply with the regulations.
As of now, Gemini exchange and Archax are the only institutions that have registered with the FCA, with some others pending review.
AUGUST 19, 2020
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