Nomura-Backed Komainu Enters UK Crypto Registry

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Oct 10, 2023 at 08:50 am

Komainu, the crypto asset custody venture bolstered by the formidable backing of Nomura, Ledger, and CoinShares, has notched a crucial milestone with its successful registration with the U.K. Financial Conduct Authority (FCA). This achievement comes at a pivotal moment, aligning with the enforcement of the FCA's latest advertising regulations. The new guidelines stipulate that companies must secure U.K. registration to autonomously scrutinize their advertisements and provide users with relevant risk warnings. Non-compliance with these directives carries the weighty penalty of potential imprisonment for up to two years.

Cryptocurrency firms that have earned the FCA's official stamp of registration are now bound by the stringent anti-money laundering policies of the country. The registry currently stands at an impressive 42 officially recognized firms. Yet, the regulator has reported a noteworthy surge in applications, numbering around 300, since the commencement of the registration process in 2021.

In response to the advent of these new advertising regulations, select unregistered companies have opted for the temporary suspension of specific services or elected to discontinue services to particular client segments. Conversely, others, like Binance, have chosen to seek endorsement for their advertisements through accredited third-party entities. Coinbase, in direct correspondence with Bitsday via email, confirmed the addition of explicit risk disclaimers to its website. Similarly, OKX has proactively unveiled a series of adjustments, including a reduction in its token offerings within the country.

Demonstrating swift action, the FCA did not hesitate in updating its list of unauthorized firms. In a decisive move, over 100 entities, including KuCoin and Huobi, were promptly appended to its advisory list on Sunday. This proactive response underscores the FCA's steadfast dedication to upholding the integrity and security of the cryptocurrency landscape within the U.K.

Read more: Cryptocurrency Market Turbulence: Stablecoins Hit New Lows - Insights from Binance Research

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