After a six-month partial absence from the UK market, cryptocurrency exchange Bitget has re-entered Europe’s investment capital, this time fully compliant with local regulations, including the Financial Promotions Regime (FPR).
Bitget Returns to The UK After Six-Month Hiatus
In early May 2024, Bitget notified its UK users that it was forced to “temporarily restrict onboarding of new users” due to “recent regulatory changes” introduced by the Financial Conduct Authority (FCA).
However, the company assured customers that it would “be back soon with a new compliant product offering for the UK on our website and mobile applications.”
Although it took some time, Bitget has fulfilled its promise and, as of today (Tuesday), announced a full re-entry into the UK crypto market, fully compliant with the FPR, which came into force over a year ago.
“Compliance is the core of our expansion strategy,” said Bitget CEO Gracy Chen. “The entrance into the UK market under the regime allows us to bring users a wide variety of digital assets within the ever-changing crypto landscape.”
New regulations have made entering the local market significantly more challenging. According to data obtained through a Freedom of Information (FOI) request by the global law firm Reed Smith in August 2024, applications for registration as a crypto-asset exchange or custodian wallet provider have decreased by 51% over the past three years.
The expansion comes through a partnership with Archax, which will enable UK users to access crypto trading and custody services, including tokenized real-world assets. The platform will offer British traders access to over 150 cryptocurrencies. According to company representatives, it significantly surpasses the token variety available through many global competitors.
“We are dedicated to upholding high standards of the Regime, providing UK investors with access to a transparent trading experience,” added Archax's Head of Regulation, Julia Loder.
The return certainly wouldn’t have been possible without the efforts of the exchange’s new Legal Chief, Hong Ng, who previously worked with Binance. In an interview with Finance Magnates two months ago, Ng emphasized that “strong compliance doesn’t have to stifle innovation—in fact, it can enable it.”
How Financial Promotions Regime Work
The FPR is a regulatory framework in the UK that governs how financial products and services are marketed to the public, aiming to protect consumers from misleading or harmful promotions. Currently in the UK market financial promotions from offshore crypto exchanges must be vetted by approved local entities.
Key Aspects of the Financial Promotions Regime:
- Authorization Requirement: Promotions must be communicated or approved by an FCA-authorized firm to ensure that the messaging is accurate, fair, and not misleading.
- Clear and Transparent Communication: The regime mandates that financial promotions must be clear, fair, and transparent.
- Specific Exemptions: Some financial promotions are exempt from the regime's rules. These exemptions include promotions to high-net-worth individuals or certain professionals.
- New FCA Powers: With recent regulatory changes, the FCA has been granted additional powers to intervene more swiftly in cases of non-compliance, including the ability to ban certain promotions outright if they pose significant consumer risk.
- Digital and Social Media Advertising: The regime also applies to online promotions, ensuring that financial advertisements on social media and digital platforms meet the same standards as traditional channels.
- Criminal Liability for Breaches: This means that individuals or companies could face prosecution if they knowingly or recklessly promote financial products without following regulatory guidelines.
Founded in 2018, Bitget currently serves over 45 million users across 150+ countries and regions, offering features such as copy trading and Web3 solutions through its integrated wallet service.
This article was written by Damian Chmiel at www.financemagnates.com.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments