UK FCA approves ClearToken’s cryptocurrency settlement platform

ClearToken, a firm that builds regulated financial market infrastructure, has received a go-ahead from UK regulators to introduce a system for completing transactions involving stablecoins and cryptocurrencies.

Reports indicate that the regulators’ decision demonstrates the country’s commitment to strengthening digital finance regulations. It also highlights a significant shift in how digital assets in the UK can be traded, cleared, and settled, establishing a significant step towards creating advanced regulated market systems. 

With this approval, ClearToken solidifies its position as the 57th company to secure approval from the Financial Conduct Authority (FCA) since the start of the UK’s Cryptoasset Register on January 10, 2020. 

The FCA approves ClearToken’s cryptocurrency settlement platform

ClearToken announced on Tuesday that it had obtained approval from the FCA to operate CT Settle, its Delivery versus Payment (DvP) settlement platform. Following this approval, analysts noted that the platform will enable users to effectively spot trading stablecoins, regular currencies, and crypto assets.

Additionally, they said that once CT Settle is operational, regulated financial institutions will have access to a digital asset settlement system that complies with certain regulatory standards, similar to traditional financial systems. 

When reporters reached out to ClearToken to comment on the topic of discussion, the company stated that the primary goal of CT Settle is to eliminate obstacles that institutions are reluctant to adopt digital assets, particularly due to concerns over counterparty risk, market efficiency, and liquidity.

Niki Beattie, the chair of ClearToken, also weighed in on the situation. As a strategic expert in financial market structure with over 30 years of experience in technology and capital markets, Beattie acknowledged that this authorisation will catalyse the widespread adoption of digital assets.

The FCA’s decision to approve ClearToken marks an emerging trend in the UK, where relevant companies are incorporating digital assets into the regular financial system. 

The UK government intends to  integrate digital assets into mainstream finance

Reliable sources reported that the Bank of England initiated discussions regarding stablecoins earlier this week and is seeking feedback on new rules that might be implemented next year.

This announcement followed reports that the Governor of the Bank of England, Andrew Bailey, had softened his stance on the potential risks that stablecoins pose to financial stability, demonstrating a more pragmatic approach towards regulation.

This move comes as individuals raise concerns about the UK falling behind other countries in adopting stablecoins. These worries escalate particularly because the UK is lagging behind the US, which has advanced with the GENIUS Act.

Meanwhile, HM Treasury published a draft policy paper in April, outlining its plans to regulate crypto assets. This document aims to describe specific types of digital assets with precision, including crucial activities such as issuance, custody, and trading, while adhering to the UK regulatory framework.

The UK government has also made the market for crypto exchange-traded notes (ETNs) accessible to everyday investors, indicating a broader effort to integrate digital assets into mainstream finance.

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