Reference Case Number: FOI9682
Freedom of Information: Right to know request:
Request 1
For each of the following types of entities registered with the FCA, I would like to know what type of directions their activities are subject to:
(1) cryptoasset exchange providers;
(2) cryptoasset ATMs;
(3) peer to peer providers; and
(4) custodian wallet providers.
For each type of directions each of these entity types operate under, I would like to know how many entities operate under those directions.
For example, the type of output I am looking for is 'Cryptoasset exchange providers registered with the FCA operate under the following types of directions: [Examples]. Within those directions, [x] of cryptoasset exchange providers operate under [example of directions], [x] operate under [example of other directions], etc.'. Please note I am not looking for information on specific entities, but rather types of entities.
Request 2
I would like information on how many entities are registered with the FCA as:
(1) cryptoasset exchange providers, and how many of these entities' activities are subject to directions or restrictions;
(2) cryptoasset ATMs, and how many of these entities' activities are subject to directions or restrictions:
(3) peer to peer providers, and how many of entities' activities are subject to directions or restrictions; and
(4) custodian wallet providers, and how many of these entities' activities are subject to directions or restrictions.
FCA response:
Request 1
The directions agreed between the FCA and digital asset providers are dependent on the entities’ business model and the risks that may stem from it. Consequently, there are no standard directions applied to a specific type of crypto service; rather, they are tailored on a case-by-case basis. This means that, for instance, two entities which provide cryptoasset exchange services may be subject to different directions.
Request 2
Please note that most digital asset providers have expressed their intention to provide more than one service. To date, we have 39 registered entities that fall under the scope of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). The range of services provided by these registered entities can be summarised as follows:
- 35 provide crypto exchange services;
- None provide ATMs services;
- 11 provide peer to peer services; and
- 26 provide custodial services.
Our records show that 32 of the 39 registered entities are subject to directions. As mentioned above, the directions are agreed following a detailed assessment of their business models. There are no firms with restrictions.