Crypto Facilities, a fully-owned subsidy of popular crypto exchange Kraken has got the approval of the top financial regulators in the UK. The Financial Conduct Authority (FCA) issued an MLR license which indicates that Crypto Facilities is now compliant with the UK’s anti-money laundering regulations, making it one of the selected few crypto companies to have got FCA’s clearance.
The clearance comes as a huge relief for the Kraken exchange in particular as it would allow the firm to offer crypto derivatives services in the country via its subsidiary. The FCA has tightened its grip around unregulated crypto derivative products forcing many mainstream crypto exchanges to withdraw derivative services. Now, Kraken would be among the very few crypto platforms to offer the derivatives services giving it a necessary market push.
Crypto Facilities CEO Gary Worrall said,
“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,”
Apart from Kraken-owned Crypto Facilities, Mode Global Holdings, two Gemini entities, Archax, Ziglu, and Digivault, and the custody business of Diginex have also received to get an MLR license.
Governments Are Introducing Stricter Crypto Policy
The Crypto market might have come a long way in 2021 both in terms of adoption and valuations, but governments around the globe remain skeptical. This is the reason governments around the globe are working towards introducing stricter policies around the crypto market. The US government passed the controversial infrastructure bill despite wide protests from the crypto community as well as several senators themselves.
The likes of China, Russia, Nigeria, and a few others have also outright banned the use of digital assets in their financial system. However, small nations such as El Salvador which has made Bitcoin a legal tender this September are already reaping the benefits of a decentralized currency. The President of the country Nayib Bukele has bought BTC in September at a discounted price and now that the BTC is near ATH, he is using the profits to build schools and hospitals.