How Uphold can change crypto trading in UK after FCA’s go-ahead

Highlights

• Uphold is a subsidiary of a US-based crypto trading platform, which was recently registered as a crypto-asset firm in the UK.
• On 23 February, Uphold got a nod from the Financial Conduct Authority (FCA) to operate in the country.
• With this, Uphold will be one of the crypto service providers for the UK-based customers operating in compliance with the UK authorities.

Uphold, a subsidiary of the United States-based crypto trading platform Uphold, has been given approval to operate as a registered crypto-asset firm in the UK. On 23 February, Uphold got a go-ahead from the Financial Conduct Authority (FCA), which would make it one of the select 32 firms that have received FCA approval to operate as a registered crypto asset service provider. With the latest development, Uphold joins the likes of eToro and Light Technology to have received the FCA nod in 2022.

This could well be a significant development considering the UK has seen a sudden spike in digital asset trading. Recently, the London Stock Exchange Group Plc (LON:LSEG) announced its intentions to deep dive into digital asset trading, following its acquisition of Tora in a £239-million deal.

The new platform

The Uphold registration would give the crypto service provider the status to operate and provide services to UK-based customers. The US-based trading platform reportedly fulfilled the terms and conditions as per the UK Anti-Money Laundering and Counter-Terrorist Financing regulations.

The FCA terms and conditions are considered as toughest regulations for any crypto asset firm in the past. Bigwigs like Binance were booted out of the country last year and have not been able to enter the country again. With cryptocurrency adoption increasing in the UK, Uphold believes that it can widen its services for UK customers.

Others on the list

Just a couple of days back, another leading crypto asset firm Bitpanda was provided with crypto custody after it acquired UK-based technological firm Trustology. Crypto custodian and wallet service provider Trustology, a Vienna-based crypto exchange, would be able to offer asset custody services in the UK and also expand its offerings.

Similarly, other leading exchanges such as Gemini, Genesis, Coinjar, and Robinhood have also managed to pass the FCA litmus test and operate in the UK.

Towards crypto adoption?

Overall, this step is a great development and would open up new prospects for these companies in a regulated manner. At the same time, it is also a win-win situation for UK customers who now have a wider choice for crypto investing and trading. But surely investors will have to be careful before investing as cryptocurrencies are highly volatile assets.