FCA to Provide Further Guidance to Firms Conducting Crypto Asset Activities
By Mark Lemon – Cryptocurrency Specialist
On 23rd January the Financial Conduct Authority (FCA) announced that it will be consulting on crypto asset guidance to set out the ways that activities such as buying and selling crypto can be regulated. The direction from the FCA will provide further understanding on how Bitcoin trading for companies can be regulated.
Businesses will have guidance to identify if their crypto assets will be under regulation from the FCA. This will provide them with a better understanding on what will need to be authorised and will confirm if they are compliant and have the right safeguard measures in place.
There have been industry requests to gain more clarity due to the popularity of businesses investing in cryptocurrency. This will help provide safer measures with buying and selling Bitcoin. The FCA’s Executive Director of Strategy and Competition has said, “This is a small but growing market and we want both industry and consumers to be clear what is regulated, and what isn’t. This is vital if consumers are to know what protections they’ll benefit from and in ensuring we have a market functioning as it should.”
Numbers are increasing in people investing in cryptocurrency assets. The FCA need to ensure that people are cashing out crypto correctly and are aware of the risk of losing money. There are many crypto asset services that are not included in the FCA’s regulatory remit and customers need to be aware of the limited regulatory protection. Buying and selling Bitcoin online has a lack of protection under the Financial Services Compensation Scheme and the Financial Ombudsman Service.
The FCA can see the potential benefits in crypto assets and clarity on the risks will be great for the market and consumers. This is a step in the right direction to encourage innovation in the right technology. There will be further consultations on banning the sale of derivatives that have been linked to types of retail investors. The government are engaging in further work to broaden their regulatory perimeters on crypto activities too.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards