The UK financial markets regulator cautioned such companies that continuing their activities would attract criminal and civil enforcement actions.
The ban on sale of digital currency derivatives that was first proposed by the U.K. Financial Conduct Authority is now in effect.
The UK regulator’s new temporary regime would run until July 9, 2021, and would apply to existing digital currency businesses who have yet to secure a required license to operate.
Markets Pilot, allegedly based in the Caribbean island nation of Dominica, has been targeting U.K. residents with its investment and trading platform, according to the FCA.
In its draft bill, the Financial Sector Conduct Authority is proposing that all service providers register as financial service providers.
The move was announced by the U.K. regulator, representing the conclusion of more than a year’s worth of consultation.
The Financial Conduct Authority has banned the sale of crypto-derivative products to retail investors in the UK; the ban becomes effective January 6 2021.
Bitstocks, the company behind Gravity, is now registered with the U.K. Financial Conduct Authority as an EMD Agent.
The FCA’s proposal will require digital currency service providers to make significant operational changes so that they can be compliant.
New proposals from the U.K.’s financial regulator could see more firms required to report on managing the risks of financial crimes.
The financial regulator has added Gemini Europe Limited and Archax exchanges to its list of registered cryptoasset firms.