UK’s FCA Approves TP ICAP As A Crypto Service Provider To Institutional Users
The United Kingdom’s Financial Conduct Authority (FCA) has registered the capital market firm TP ICAP as an approved digital asset service provider to institutional players.
Meanwhile, the company’s exchange, “Fusion Digital Assets,” will utilize TP ICAP’s electronic OTC system, Fusion, to enable users to access the non-custodial platform for trading.
To further ensure the safety of the client’s assets and the transaction services, the partnership will pair TP ICAP’s new exchange with Fidelity Digital Assets, the crypto arm of the asset management company Fidelity Investments.
Meanwhile, the platform is set to offer different liquidity from some of the market’s established makers worldwide. According to Duncan Trenholme, the deputy head of the digital assets unit at TP ICAP, the crypto industry’s focus is much more on retail than wholesale.
He said, “The wholesale crypto space lacks robust infrastructures and the assurances needed to attract the traditional client base to contribute capital.”
Thus, TP ICAP comes with a separate model, several operating settings, and efficient distribution. With the availability of these features, institutional clients can be onboarded into the crypto ecosystem.
Trenholme noted that amid the crypto market downturn, blockchain technology continues to drive the tokenization of traditional asset classes. “The move will lead to more efficient and lower-risk trading for the financial system,” added Trenholme.
Furthermore, the new partnership with Fidelity Digital Assets aims to develop a diversified asset custody model. As a result, TP ICAP will collaborate with several wallet custody providers to create interoperable asset custody services for its institutional client base.
In addition, custodians will have to attune themselves to the changing demands in the financial market in the coming years.
Regulating Crypto Assets Advertisement
Earlier last month, the UK’s House of Commons rolled out new guidelines on how exchanges can regulate crypto tokens in the country. The move is the latest amendment to the Financial Services and Markets Bill, which specifies the approach to cryptocurrency and the powers of the FCA.
The amendment, however, is made to empower the FCA to oversee the marketing and advertisement of digital financial asset products within the UK. Thus, the FCA can have the authority to regulate all financial promotions in the crypto space and investments relating to digital currencies.
While explaining the recent changes, outspoken Parliament Member, Andrew Griffith, stated that the new law forbids unlisted companies or enterprises from advertising or promoting financial investment products relating to cryptocurrency.
The latest amendment also means that the FCA would oversee the operation of digital asset service providers. Also, all crypto exchanges must get the agency’s approval before starting their operations.
Since the news broke out, several crypto exchanges have been rushing to get the FCA’s approval to enable them to operate in the UK. Since March 2022, more than 100 firms have applied for an operating license.
But only 27 have been registered by the regulator, with the rest forced to withdraw their applications.
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