BlackRock and Galaxy Digital have received approval from the UK's Financial Conduct Authority (FCA), allowing them to expand their digital asset activities.
FCA Approval for BlackRock
BlackRock has joined the FCA's crypto asset register, becoming one of the few global institutions to meet the regulator's high standards. This paves the way for the firm to offer its new spot Bitcoin exchange-traded product to UK-based institutional clients.
BlackRock's registration enables it to arrange transactions and sales for crypto-related products issued by iShares Digital Assets AG, including its newly launched iShares Bitcoin ETP (IB1T). However, retail investors in the UK are still barred from accessing crypto-linked ETPs under current FCA rules.
Galaxy Digital's UK Expansion
Galaxy Digital, led by Mike Novogratz, has also received FCA's approval to expand its presence in the UK. The firm can now offer crypto derivatives trading through its London operation, marking a significant step in its strategy to build regulated financial infrastructure in Europe post-Brexit.
Crypto Regulation in the UK
The approvals of Galaxy Digital and BlackRock come as the FCA moves towards a more structured framework for digital assets. While consumer protections remain a concern, institutional access to crypto in the UK is gradually widening, with heavyweight players like BlackRock leading the way.
FCA's approval for major firms like BlackRock and Galaxy Digital highlights a growing interest and regulatory effort to structure the crypto market in the UK, setting the stage for broader institutional participation.
