One of the world’s largest cryptocurrency exchanges, Gemini, has had its UK arm added to the Financial Conduct Authority’s official list of registered cryptoasset firms.
On 19 August, the regulator added Gemini Europe Limited to its list — making it only the second firm to receive this recognition. Digital asset exchange ArchaxEx got the green light earlier on the same day.
Gemini was founded by the Winklevoss twins, who shot to fame following the dramatisation of their legal dispute with Facebook founder Mark Zuckerberg in the film The Social Network. The firm is regulated as a New York trust company.
According to the FCA’s website, as of 10 January 2020, firms carrying out specific cryptoasset activities in the UK have needed to register with the City’s watchdog.
Cryptocurrencies are digital tokens underpinned by blockchain technology, such as bitcoin or ethereum. The currencies, which although hailed as a safe-haven asset amid the volatility of the Covid-19 pandemic, have seen prices yo-yo, mirroring stocks. Cryptocurrencies do not require a central authority, such as a bank or government, to process transactions.
ArchaxEx, announcing its status as the first-ever FCA regulated digital securities exchange and custodian in the UK, said in a 19 August statement that it was an “important milestone for the emerging global digital securities ecosystem”.
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