Zumo becomes the first to integrate FCA-required tech requirements for crypto firms
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UK-based digital-asset-as-a-service platform Zumo became the first entity in the country to implement the new tech-based requirements requested by the country’s regulator, the Financial Conduct Authority (FCA).
The regulator introduced the new financial promotions regime for crypto companies earlier this year, and the requirements are set to officially take effect in less than a week, on October 8. Meanwhile, Zumo introduced a financial promotions technical flow design, thus taking the lead in regulatory compliance among its peers.
The FCA approved Zumo’s new design
The FCA deemed the new design appropriate, and the company has already implemented it, in full. The firm was praised for its quick reaction, and its early compliance symbolizes its commitment to setting the highest standards in regulatory alignment.
The FCA’s new regulation requires companies to enhance consumer protection measures. With so much money lost in the crypto industry, the regulator sought a way to prevent harm to consumers from investing in digital currencies, especially in cases when buyers underestimate the risks.
According to the FCA, it is still up to the users to decide whether they want to buy cryptocurrencies or not. However, they should be able to make this decision while having access to accurate, fair information. The idea is to ensure that the consumers know what they are getting into, which may or may not affect their decision to go through with the investment.
Zumo’s CEO, Nick Jones, commented on the move, saying: “The rigorous adherence to regulatory frameworks is not just about compliance but is a testament to our commitment to be the trusted and sustainable partner for digital assets, ensuring the safety and the integrity of the digital asset industry.”
In other words, Zumo did not integrate the new requirements to appease the regulators but rather to ensure consumer confidence and security. More importantly, the company now stands out amid a volatile backdrop, which caused many other major players in the UK to pause operations while they wait for the local crypto ecosystem to become more stable.
The FCA struggles to reach out to foreign crypto firms operating in the UK
The FCA recently noted that it had encountered a massive lack of interest among the locally operating crypto firms when it came to the new requirements. The regulator attempted to contact over 150 crypto companies, primarily unregistered foreign firms that operate in the UK territory.
According to its recent statement, only 24 of 150 companies even responded to its warnings, which prompted the regulator to publicly send the “final warning” to these firms, threatening legal action to all those who fail to react to the changes in local laws and regulatory requirements.
Amid this, Zumo emerged as a firm that expressed great readiness to comply with UK laws and regulations, explaining that it hopes to set a good example for other crypto and fintech firms to follow.
