BlackRock Secures Spot on FCA’s Crypto Register
In a significant development for the cryptocurrency landscape, BlackRock, the world’s largest asset manager, has successfully made its way onto the Financial Conduct Authority’s (FCA) stringent crypto register, as indicated on the regulator’s official website. This achievement allows BlackRock to serve as an arranger for iShares Digital Assets AG, which specializes in the issuance of Exchange Traded Products (ETPs) linked to crypto assets.
The registration process with the FCA is notably rigorous; the crypto register was established in 2020 to ensure that firms wishing to engage with U.K. clients comply with strict anti-money laundering regulations. To date, the U.K. has received a total of 368 applications, but only 51 firms have successfully gained approval.
As an arranger, BlackRock will have the capability to facilitate the execution of transactions in cryptoassets to support both subscriptions and redemptions of ETPs, directly linking issuers with authorized participants. However, it is important to note that BlackRock will not have the authority to onboard any new customers at this time. Additionally, the firm is prohibited from operating any mechanisms that utilize automated processes to exchange cryptoassets for currency, or vice versa, without obtaining explicit written consent from the regulator.
BlackRock’s inclusion in the register places it alongside notable players in the crypto industry, such as Coinbase, which also achieved registration this year. However, as the regulatory landscape continues to evolve, a new crypto regime is anticipated, which could further shape the operational capabilities of firms within this space.
