The UK FCA registration ensures that Crypterium can continue to provide its crypto wallet services, including its VISA cards and exchange functions, to practically everybody in the UK even after Brexit measures kick in. Our market-leading B2B offering can also provide the same level of functionality to UK businesses.
One of the consequences of Brexit is that companies can not rely on the pre-Brexit Financial Services ‘Passporting’ program. Passporting rights have now ceased and the transition period ended on 31 December 2020. Many large UK banks and broker-dealers had already restructured their operations based on a “hard Brexit” scenario.
Passporting refers to the regulation of financial services, allowing UK firms to continue to do business throughout the EU/EEA without the need for further authorization and visa versa. EU/EEA firms currently operating through a passport in the UK under the existing European passport framework will require a Part 4A permission under the Financial Services and Markets Act (FSMA) to be able to continue carrying out regulated activities in the UK. This has led to HM Treasury legislating for a Temporary Permissions Regime (TPR), which has now taken effect.
The aim of the TPR is to allow firms that are not based in the UK to continue carrying out business in the UK for a limited period while they seek authorization from UK regulators. But as we already know, there is no guarantee that the UK regulator will approve such applications as in effect, it is almost a new license application. The temporary licenses cease at the end of March 2022.