TP ICAP enters the crypto sector with its Fusion Digital Assets marketplace after obtaining a license from the UK FCA.
Fusion Digital Assets intends to provide a platform for pairing crypto spot orders and executing trades.
TP ICAP will only provide services to institutions.
announced that it has received a crypto-asset service provider license from the UK Financial Conduct Authority (FCA).
The broker has entered the cryptocurrency sector using its proprietary OTC electronic platform called Fusion Digital Assets marketplace. The marketplace will provide clients with access to a non-custodial crypto asset exchange for order matching and spot crypto trading.
However, TP ICAP has yet to launch its crypto exchange services, despite confirming the upcoming services in mid-2021. Tullett Prebon (Europe) Limited will operate the exchange and will solely serve institutional market participants.
The brokerage firm will enhance the effectiveness and automation of financial processes, as well as risk-mitigated trading and settlement. The addition of an industry leader in brokerage services spanning commodities, credit, stocks, and foreign exchange asset classes will boost the crypto market infrastructure.
The TP ICAP also intends to collaborate with a number of custodians to provide its clients with segregated interoperable custody services. The move comes as the UK's Financial Conduct Authority urged Legislators to support its decision not to license crypto exchanges like FTX.
Meanwhile, all crypto businesses operating in the UK are now required to register with the regulator as a result of the FCA's expanded authority over the country's cryptocurrency industry.
Most crypto-related businesses operating in the UK are currently not regulated by the FCA, instead relying on a registration process that focuses solely on anti-money laundering and financial crime safeguards.
However, after lawmakers approved amendments to the Financial Services and Markets Bill in October, the FCA's jurisdiction was expanded to crypto assets, paving the way for a more complete set of rules for the sector. The bill had solely included proposals to extend existing restrictions to payments-focused stablecoins prior to the amendment.
The extension implies that exchanges must obtain a license from the FCA in order to regulate in the UK. However, if crypto exchanges failed to register themselves under FCA, the authority has the power to cease their operations.
What are your thoughts on the FCA's growing control over crypto assets in the UK? Share your views in the comment section below.
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