The day after the U.K.-based EXMO crypto exchange was hacked last month, reportedly losing 6% of its crypto assets, the team got a call from the U.K.’s Financial Conduct Authority (FCA).
The FCA recently put the exchange on the list for temporary registration and wanted to know what EXMO, an exchange with $117 million in daily volume, according to CoinGecko, was going to do to prevent such incidents in the future, the exchange’s COO Sergey Zhdanov told CoinDesk, providing rare details about how exchanges address regulatory requirements in the U.K.
The country has been a jurisdiction of choice for many crypto startups. “The U.K. has always been a strong hub for financial companies, whether they are crypto or not. The regulatory framework, unlike other countries, for crypto has gradually started to become clearer and I feel this clarity is what companies are really searching for,” Iqbal V. Gandham, former managing director of eToro in London,