UK FCA License
About that Country :
The UK is a great choice for Crypto Exchange setups due to the absence of any specific regulation introduced by the Financial Conduct Authority or FCA. However, it is highly recommended that Crypto Exchange Companies completed an analysis of their planned activity in order to clarify whether the particular project complies with the local legislation, mainly because the legal framework to the cryptocurrencies remains unclear for most potential investors. Although, there is no specific regulation, the FCA is of opinion that some Crypto Exchange setups may fall within the FCA’s regulatory boundaries depending on how they are structured, and it can only be decided case by case. Still, most Crypto Exchanges will fall outside the regulated area and will not involve any regulated investments under the relevant law. In other words, promoters involved in Crypto Exchanges are recommended to carefully consider whether their activities could mean they are arranging, dealing or advising on regulated financial investments.
About that Regulating Body :
The regulatory body responsible for the issuing of forex licenses and monitoring of forex activity is the UK FSA, also known as the UK Financial Services Authority. The UK FSA was established to provide a regulatory framework for all financial companies from rule making and investigatory practices, to powers of enforcement and ensuring statutory conditions are met.
The UK FSA enforces its regulations through the Financial Services and Market Act 2000 (FSMA). This Act provides the scope of objectives, standards, rules and remedies for financial service organizations’ in the UK. It is an independent regulatory body which means that the funding for the body to operate is attained solely from the firms it regulates and not from government expenditure. Despite being an independent body, the UK FSA is answerable to the Treasury and higher up, the UK Parliament.
The structure of the regulatory body is headed by the ‘Board’ of which decides on the overall policies and direction of which the FSA takes.
The scope of the UK FSA regulates exchanges, financial companies and financial services markets.