A phenomenal and encouraging Cryptocurrency news related to bitcoin has happened in UK recently. It was revealed that a cryptocurrency exchange in the UK was successful in making a deal by opening a bank account with British start-up Clear Bank. This was reported by two persons close and familiar with the event. This has opened the window of commercial Banks allowing domestic customers to trade digital currencies within the UK without moving their money overseas.
It is revealed that Mainstream British and other European financial institutes have extensively transacted in cryptocurrencies. This attracted increasing review by financial regulators. They have already appealed to bank CEOs to carry out good practices to mitigate the risks related to of financial crimes as a consequence of the abuse of cryptocurrencies.
In a letter addressed to domestic bank CEOs, the UK’s Financial Conduct Authority (FCA) specifically directed to financial institutions to review and scrutinize their clients who practice phenomenal business activities in crypto. This should include the companies who take part in initial coin offerings (ICOs), a recent fundraising procedure powered by cryptocurrencies. Earmarking cryptocurrencies as ‘crypto assets’, the FCA suggested this can be ‘abused’ by taking advantage of remaining anonymous.
The Cryptocurrency news stated that Financial Regulator has made a deal with London Block Exchange, one of the UK’s better-known digital wallet service providers. Hence, the opening bank account will be beneficial to British customers to exchange, buy and sell cryptocurrencies faster and cheaper. London Block Exchange also decided to cooperate with its clients to avail the Faster Payments facilities offering to use its network.
So far Traditional lenders were no interested do business with companies that handle bitcoin and other digital currencies because of a regulatory crackdown. Cryptocurrency news also reveal that San Francisco-based exchange Coinbase had a deal in March to open a bank account with Britain’s Barclays. So far companies that handle cryptocurrencies have been forced to open accounts outside Britain. More people engaged in crypto business will be benefitted if other British bank also follow suit, Reuters reported.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]