The U.K. Financial Conduct Authority granted Fidelity Digital Assets registration for its digital asset custody and trade execution services, Fidelity announced today.
Previously, the firm was listed as a temporary member, but the FCA has now moved it to the permanent register. With this comes a money laundering regulations (MLR) license, meaning the FCA considers Fidelity compliant with money laundering regulations related to crypto.
The FCA took over as the AML watchdog for crypto firms operating in the UK at the start of 2020, and it swiftly introduced a mandate that crypto firms register with the regulator. Firms were originally supposed to meet a January 10, 2021 deadline to register their activities or close up shop, but the agency extended that deadline as it struggled to keep pace with the wave of applications. Some firms found hundreds of days passed with their applications under review.
In response, the FCA increased resources for handling the applications. Since then, the FCA has granted approval to a number of firms, including Kraken, two Gemini entities, Digivault and Mode, among others.