Kraken-owned Subsidy in the United Kingdom Gets FCA Approval

UK’s leading financial regulators have given their approval to Crypto Facilities, a wholly-owned subsidiary of prominent crypto exchange Kraken.

Crypto Facilities has received an MLR license from the Financial Conduct Authority (FCA), indicating that it is now compatible with the UK’s anti-money laundering legislation, making it one of the select few crypto companies to have FCA approval.

The approval is especially welcome for the Kraken exchange, as it would allow the company to offer crypto derivatives services in the country through its subsidiary. The FCA has tightened its grip on unregulated crypto derivatives, causing many mainstream crypto exchanges to stop offering them. Kraken would now be one of the few crypto platforms to offer derivatives services, giving it a much-needed market boost.

Gary Worrall, CEO of Crypto Facilities, stated,

“It paves the way for us to enhance and expand our offering, ensuring clients have access to the various exposures that best fit their investment needs,”Related articleSEC Will Rather Pass an Ethereum (ETH) Futures ETF Than a Spot Bitcoin (BTC) One, Here’s Why

Apart from Kraken’s Crypto Facilities, Mode Global Holdings, two Gemini businesses, Archax, Ziglu, and Digivault, as well as Diginex’s custody firm, have all secured MLR licenses.

Governments are enacting more stringent crypto policies

In 2021, the crypto industry may have come a long way in terms of usage and values, but governments throughout the world are still wary. This is why governments all over the world are working to impose stronger regulations on the cryptocurrency industry. Despite widespread concerns from the crypto community and some lawmakers, the US government enacted the contentious infrastructure package.

China, Russia, Nigeria, and a few other countries have outright banned digital assets from their financial systems. Small countries, such as El Salvador, which adopted Bitcoin legal money in September, are already benefiting from a decentralized currency. President of the country Nayib Bukele purchased BTC at a bargain in September and is now utilizing the earnings to develop schools and hospitals as BTC approaches ATH.