BlackRock has received approval from the Financial Conduct Authority (FCA) to operate as a registered crypto activity company in the United Kingdom.
The approval places BlackRock, the world’s largest asset management company, one of a growing list of regulated companies In the region, including Coinbase and Kraken.
This milestone also marks an important step in the continuous expansion of the asset manager to the digital assets space in the past year.
What can BlackRock do?
According to the FCA website, the BlackRock registration enables its only customer, Ishares Digital Assets AG, to support crypto-related exchange-related products (ETPs).
These products offer exposure to specific cryptocurrencies and are supported by the underlying assets. However, the role of BlackRock is very limited and tailored to a limited reach of services.
The company may carry out the following activities:
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Facilitate the implementation of Crypto activation transactions to support ETP subscriptions and repayments between the issue and designated participants.
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Sales digital assets for Fiat -Maluta to cover operational costs for itself and the service providers of the issuer.
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Convert digital assets in Fiat during early repayments of the ETP.
In the meantime, BlackRock is not allowed on board new customers for this service, unless the written permission from the FCA receives.
Moreover, the company is limited to operating automated machines that convert Fiat into crypto or vice versa. It is also forbidden to keep or control customer funds.
Ishares Bitcoin ETP
Market observers have suggested that the approval could enable the company to expand Ishares Bitcoin ETP to the UK.
Last month, BlackRock launched his Ishares Bitcoin ETP for European users via the Euronext fairs in Paris, Amsterdam and the German Xetra exchanges.
This product is available for institutional and expert retail investors. It is intended to offer safe and regulated access to Bitcoin through traditional trade fairs.
The ETP has a temporary exemption from the reimbursement that reduces its total cost ratio to 0.15%until the end of the year. It is expressed in American dollars and supported by Bitcoin, who has Coinbase in offline cold storage.
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