GSR Secures FCA Approval for Crypto Trading and Liquidity Services in the UK

FCA Regulation UK

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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January 6, 2025

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GSR, a major crypto trading and liquidity provider, has obtained regulatory approval from the UK’s Financial Conduct Authority (FCA).

The approval allows GSR Markets UK Limited to operate as a registered crypto asset business, enabling it to offer crypto trading services to clients in the UK.

“This milestone underscores our commitment to fostering a transparent and inclusive global crypto trading ecosystem,” said Xin Song, CEO of GSR Group.

GSR Strengthens Regulatory Standing with FCA Approval

The FCA approval adds to GSR’s growing regulatory credentials. Earlier this year, Singapore’s Monetary Authority of Singapore granted GSR a major payment institution license, permitting over-the-counter trading and market-making services.

The market maker first received in-principal approval from MAS in September.

“By achieving approvals from two of the world’s leading financial regulators, the GSR Group can confidently expand our services to institutional and professional clients globally while continuing to uphold the integrity and high-quality service that we are known for.”

Despite these achievements, GSR underwent notable leadership changes in 2024, with co-founder and co-CEO Rich Rosenblum, along with CTO John MacDonald, departing the firm as part of an executive reorganization.

Instead, the firm appointed a former JP Morgan executive, Andreas Koukorinis, as its new head of trading.

Founded in the United States in 2013, GSR facilitates OTC crypto trading, derivatives, market making, and venture capital investments.

It also holds money service business licenses across several states in the United States.

Bank of England Demands Firms to Disclose Crypto Exposure

Last month, the Bank of England’s regulatory arm, the Prudential Regulation Authority (PRA), issued a directive requiring businesses to disclose their current and anticipated exposure to crypto assets by March 2025.

The PRA said the move aims to bolster financial stability and shape the central bank’s approach to regulating the burgeoning sector.

The regulator asked firms to report their “current and expected future cryptoasset exposures” and to outline their application of the Basel framework—a regulatory standard introduced in December 2022 by the Basel Committee on Banking Supervision (BCBS) to set capital and risk management requirements for crypto exposure.

The directive extends beyond current exposure, with firms required to account for any future plans to engage with crypto assets through to September 30, 2029.

In November, Economic Secretary to the Treasury Tulip Siddiq also revealed that the country plans to introduce a comprehensive regulatory framework for the cryptocurrency sector early next year.

The proposed framework will consolidate regulations for stablecoins and staking services under one unified regime.