On Tuesday, BlackRock successfully secured a spot on the Financial Conduct Authority’s stringent cryptocurrency register, as indicated on the regulator’s website.
This leading asset management firm will now be able to serve as an arranger for iShares Digital Assets AG, which issues Exchange Traded Products (ETPs)—financial instruments linked to underlying assets, in this instance, cryptocurrency assets.
Getting registered on the U.K.’s crypto roster is quite a challenge. Established in 2020, the FCA’s crypto register was designed to ensure that cryptocurrency businesses aiming to cater to U.K. clients could do so only after registering in compliance with national anti-money laundering regulations. Out of 368 applications submitted, only 51 firms have received approval.
As an arranger, BlackRock can facilitate the “execution of transactions in cryptoassets to support ETP subscriptions and redemptions” between issuers and authorized participants, though it won’t be authorized to onboard new customers.
Additionally, BlackRock is restricted from operating any automated system that exchanges cryptoassets for fiat currency without prior written approval from the regulator.
With this registration, BlackRock joins other entities like Coinbase, which also gained entry onto the register this year, although a new cryptocurrency framework is on the horizon.