This week we focus on the UK, which rejected all but four of 35 crypto company registrations, Qatar is taking firm steps toward crypto regulation, and Latvia accelerates MiCA crypto adoption.
UK crypto registrations struggle – only 4 of 35 approved by FCA in 2023-2024
This week, the UK’s Financial Conduct Authority (FCA) released its Annual Report for 2023-24, emphasizing its focus on regulating the UK’s rapidly evolving financial landscape.
The report outlines significant steps taken to monitor and enforce compliance across various sectors, including the burgeoning crypto industry.
CEO, Nikhil Rathi introduces the report, “We continue to play a leading role internationally – shaping the global standards on crypto, sustainability, and non-bank finance, to name but a few.”
However, the report goes on to say that just four of 35 crypto registration applicants were sufficiently AML / CFT qualified to operate in the UK legally. This highlights the significant increase in rejections due to weak money laundering controls, as the majority of registrations were either withdrawn, rejected, or refused.
Find out more here.
Qatari QFC makes big move towards crypto adoption
As the Middle East opens to Web3, the Qatar Financial Centre (QFC) has moved from a ban on crypto to introducing the new Digital Asset Regulations in September 2024.
This framework legalizes smart contracts, licensing for cryptocurrencies, property rights in tokens and their underlying assets, custody arrangements, transfer and exchange.
Qatar’s major step forward results from a consultative process launched in 2023, involving a range of start-ups and fintech firms in its development and aimed at establishing a robust regulatory environment aligned with international best practices.
This regulatory clarity aims to attract domestic and international players, thus boosting Qatar’s financial sector competitiveness and positioning it on a par with the UAE’s digital assets framework.
Find out more here.
Latvia accelerates MiCA crypto adoption
The European Union’s landmark crypto regulation, the Markets in Crypto-Asset (MiCA) Regulation, is being implemented gradually throughout the region.
The Latvia Central Bank now offers licensing consultations for any local crypto asset service providers (CASPs) seeking to obtain a MiCA-compliant license in the country. As of January 2025, the bank will accept applications and issue licenses for CASPs in the country.
In June 2024, Latvia’s financial regulators established the Crypto Assets Services Law, which offers a clear regulatory framework to support the country’s aim of becoming a hub for blockchain and crypto companies.
The Minister of Economics, Victors Valainis, said, “We aim to double our economy over the next decade, reaching 83 billion euros in GDP by 2035. Smart technology is a priority, with 183 million euros allocated for digitalization and 210 million euros for innovation.”
In preparation for the new regulations, the Latvian Blockchain Association is offering free consultations to assist companies. This includes explaining the necessary documents and evaluating a company’s current compliance status. The association is also dedicated to providing support to local CASPs as they go through the licensing process.
Latvia is not alone in proactively approaching the implementation of MiCA.
In August, France’s financial markets regulator, Autorite des Marches Financiers (AMF), announced it is accepting applications for CASPS six months before the laws are enforced.
Find out more here.
