The first 75 Crypto Asset Service Provider licences have been issued

CIARAN RYAN: The Financial Sector Conduct Authority, the FSCA, has just issued what appears to be the first batch of Crypto Asset Service Provider or CASP licences, a total of 75 licences so far. This ushers in a new regime for the previously unregulated crypto space. One of the stated goals of licensing CASPs is to eliminate scams such as Mirror Trading International and Africrypt.

So we’ve been decorated with the Category 1 and Category 11 FSCA licences, as well as the Forex intermediary licences. These all fit into a mandate as such. So having a CASP licence added to an FSP licence is really an extension to the existing products that we are mandated to use. For example, our CASP 2 licence is a discretionary licence.

For crypto it’s a little different; perhaps a little more lenient. Category 1 is your entry point. This is to perform the intermediary and advisory services, akin to an insurance broker and financial advisor, for example. This is what we as financial service providers have to do to screen our clients – and on an ongoing process. But one of the big pain points coming up now is CPD . For my colleagues out there, the deadline is May 31, and most of us will require 24 points. Eighteen hours are essentially the norm for the Financial Services Sector, and the CASP’s requirements now require an additional six hours.

In terms of what it does for CURRENCY HUB and the arbitrage, I reiterate: we’ve been using the Cat 2 and the tools that lend themselves to us in a very, very sophisticated set of arbitrage strategies. Nothing changes there because we have and have had everything in place since 2019, notwithstanding the CASP.

So every FSP is visible on the FSCA website. Here you can search by its name or you can search by its FSP number. If the information doesn’t match, then be cautious. ANDREW LUDWIG: Thanks, Ciaran. As that bootcamp, or incubator, for want of a better word, essentially over the last 18 months, we’ve been working closely with several crypto pioneers who no longer want to do the arbitrage – either because the premium had dropped so low and they simply couldn’t compete in the low margins that were available, or they were simply overwhelmed by the regulatory landscape.

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