Payments Infrastructure Provider Banxa Joins FCA

Payments Infrastructure Provider Banxa Joins FCA

Time Stamp: February 13, 2024 8:35 AM
Source Node: 2479623

The UK affiliate of Banxa, a payments infrastructure
provider, has emerged as the inaugural entity to join the Financial Conduct
Authority’s (FCA) crypto register in 2024.

This inclusion within the regulator’s list grants BNXA UK
VASP the authorization to offer crypto-related services to clients based in the
United Kingdom. Notably, Brinda Paul, the company’s General Manager, held the
position of Director of Compliance at Banxa, headquartered in Melbourne,
Australia. Banxa is recognized for its presence on the Toronto
Stock Exchange.

Banxa furnishes fiat-processing services catering to the
clientele of various cryptocurrency exchanges, including Binance and OKX.
Despite Banxa’s affiliation with these exchanges, it is noteworthy that neither
Binance nor OKX possesses FCA approval
for their crypto operations.

Brinda Paul, General Manager, Banxa UK, Source: LinkedIn

One of the critical implications of FCA registration
pertains to promotional activities targeting UK customers. Companies intending
to disseminate promotional materials to UK based clients must either secure
registration with the FCA or seek approval for their promotions through an
authorized entity. It is crucial to underscore that registration alone does not
confer upon firms the authority to approve promotional content issued by other
entities.

In response to the regulatory requirements, certain
unregistered firms have had to reassess their operations, leading to the
withdrawal of services from specific clientele. For instance, Binance opted to
halt the onboarding of new UK clients. Furthermore, the exchange encountered
challenges in identifying eligible firms to endorse its advertisements.

FCA Updates Guidance for Cryptoasset Firms

The FCA
has issued updated guidance for cryptoasset firms in response to recent
legislative changes, as reported by Finance
Magnates. These changes bring crypto promotions targeting UK consumers
under the FCA’s oversight, aiming to improve consumer understanding of crypto
investments and associated risks. More than 200 crypto firms were found not to
comply with the fundamental requirements when the regulations took effect.

The FCA’s guidance, developed through industry consultation,
assists firms in adhering to updated marketing regulations in the evolving
regulatory landscape. Lucy Castledine, the FCA’s Director of Consumer
Investments, highlighted the alignment of the new crypto marketing rules with
other high-risk investments, with the FCA incorporating industry feedback to
refine the rules and accompanying guidance during the consultation phase.

The UK affiliate of Banxa, a payments infrastructure
provider, has emerged as the inaugural entity to join the Financial Conduct
Authority’s (FCA) crypto register in 2024.

This inclusion within the regulator’s list grants BNXA UK
VASP the authorization to offer crypto-related services to clients based in the
United Kingdom. Notably, Brinda Paul, the company’s General Manager, held the
position of Director of Compliance at Banxa, headquartered in Melbourne,
Australia. Banxa is recognized for its presence on the Toronto
Stock Exchange.

Banxa furnishes fiat-processing services catering to the
clientele of various cryptocurrency exchanges, including Binance and OKX.
Despite Banxa’s affiliation with these exchanges, it is noteworthy that neither
Binance nor OKX possesses FCA approval
for their crypto operations.

Brinda Paul, General Manager, Banxa UK, Source: LinkedIn

One of the critical implications of FCA registration
pertains to promotional activities targeting UK customers. Companies intending
to disseminate promotional materials to UK based clients must either secure
registration with the FCA or seek approval for their promotions through an
authorized entity. It is crucial to underscore that registration alone does not
confer upon firms the authority to approve promotional content issued by other
entities.

In response to the regulatory requirements, certain
unregistered firms have had to reassess their operations, leading to the
withdrawal of services from specific clientele. For instance, Binance opted to
halt the onboarding of new UK clients. Furthermore, the exchange encountered
challenges in identifying eligible firms to endorse its advertisements.

FCA Updates Guidance for Cryptoasset Firms

The FCA
has issued updated guidance for cryptoasset firms in response to recent
legislative changes, as reported by Finance
Magnates. These changes bring crypto promotions targeting UK consumers
under the FCA’s oversight, aiming to improve consumer understanding of crypto
investments and associated risks. More than 200 crypto firms were found not to
comply with the fundamental requirements when the regulations took effect.

The FCA’s guidance, developed through industry consultation,
assists firms in adhering to updated marketing regulations in the evolving
regulatory landscape. Lucy Castledine, the FCA’s Director of Consumer
Investments, highlighted the alignment of the new crypto marketing rules with
other high-risk investments, with the FCA incorporating industry feedback to
refine the rules and accompanying guidance during the consultation phase.

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