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FCA Approves Galaxy Digital’s Strategic Move into UK’s Crypto Market

BlackRock's recent approval by the UK’s Financial Conduct Authority (FCA) marks a significant development in the crypto sector.

With this registration, BlackRock is set to facilitate the issuance of crypto-backed Exchange Traded Products (ETPs) through its iShares Digital Assets AG division.

The FCA's rigorous vetting process highlights the achievement, as only 51 of 368 applicants since 2020 have received approval.

While BlackRock's entrance is promising, it faces restrictions, such as the inability to onboard new clients without further regulatory permissions.

This framework aims to protect consumers while integrating BlackRock into an exclusive group of recognized firms, including Coinbase.

Industry associations are advocating for government action to appoint a dedicated envoy for crypto, emphasizing the need for cohesive regulations.

They argue that immediate steps are vital for the UK to retain its competitive edge against other global players like the U.S.

Discussions surrounding a national blockchain strategy are underway, focused on leveraging the UK's regulatory advantages and skilled workforce.

As these initiatives progress, the landscape for digital assets in traditional finance within the UK is looking increasingly dynamic.

This pivotal juncture indicates growing acceptance of cryptocurrencies in institutional investment, particularly with players like Galaxy Digital entering the fray.