Banxa UK Receives FCA Approval for Crypto Services
The Financial Conduct Authority (FCA) has added Banxa UK to its crypto register, allowing the international fiat-processing payment company to offer crypto-related services to its UK clients. Banxa UK is now registered under the FCA’s virtual asset service provider (VASP) licensing regime. As part of the registration process, Banxa UK must conduct anti-money laundering (AML) checks on new customers through know-your-customer (KYC) procedures. The head of Banxa UK is Brinda Paul, who previously served as the director of compliance for the Australian-based Banxa company. Banxa provides fiat-processing services for top crypto exchanges such as Binance and OKX.
Challenges for Service Partners
While Banxa UK gains regulatory approval, its service partners face challenges due to regulatory hurdles. Binance, for example, has halted onboarding new UK clients because it lacks an FCA license. This decision was prompted by the UK’s new crypto ad rules, which require businesses to pre-approve their media campaigns if they are registered with the FCA. Binance’s media partner, Rebuildingsociety.com, is still awaiting approval from the FCA, causing delays in promotion plans. Although Banxa can advertise, it does not have the authority to approve promotions from other companies it partners with.
Decline in Registered VASPs
The FCA’s crypto register lists regulated VASPs in Great Britain. However, recent data shows a decline in the number of new VASP entities added to the register. In 2022, there were 12 new registrations, but this dropped to just 4 in 2023. Stricter advertising rules and regulatory uncertainty have deterred major players like Binance and PayPal from entering the market. Binance and other companies must adhere to the FCA’s regulatory guidelines despite Banxa’s registration.
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