This article briefly:

·Only three companies are authorized to help cryptocurrency businesses comply with the Financial Conduct Authority’s cryptocurrency advertising rules.

·Gateway21 is a promising niche as established companies are entering into significant partnerships or expanding their compliance staff to promote cryptocurrencies.

The U.S. Securities and Exchange Commission’s (SEC) decision not to appeal a ruling overturning Grayscale’s Bitcoin ETF switch could hasten the next bull run.

Global cryptocurrency exchanges looking to comply with the UK's new advertising rules are increasing demand for compliance advisors. With supply exceeding demand, three such companies are raking in cash.

Abrdn-backed Archax, one of the firms authorized by the UK Financial Conduct Authority (FCA) to scrutinize cryptocurrency advertising, has recently expanded its compliance team to cope with the influx of work. Archax provides services to well-known exchanges Coinbase and OKX.

Compliance companies talk about it

Cryptocurrency advisory firm Englebert has hired consultancy Helford Capital to meet the UK’s new digital asset rules. Cryptocurrency startup Gateway21 has applied to specifically enter this market.

Simon Barnaby, Archax’s chief marketing officer, said compliance firms must go through a largely manual process when signing contracts, depending on how many tokens are listed on the exchange. However, lawyer Charles Kerrigan believes the scarcity of the company means a few can profit from it.

"It's a smart way to make money because there are few service providers who need it and many companies."

The FCA introduced new financial promotion rules on October 8, allowing only authorized companies to advertise cryptocurrencies. The move is expected to be the first of many crypto rules following the approval of the Financial Services and Markets Bill this year.

FCA Alert 2022 | Source: Financial Conduct Authority

Following the new rules, the FCA issued an alert against 150 unauthorized cryptocurrency promoters. Companies that were licensed before the new rules took effect are automatically eligible.

SEC Competition Security Label

The FCA's tightening action comes after the US Securities and Exchange Commission (SEC) proposed refining the names of new financial products. SEC Chairman Gary Gensler believes that old names describing new products could harm investors.

The U.S. Securities and Exchange Commission has decided not to appeal a ruling that its reasons for rejecting a conversion of the Grayscale Bitcoin Trust exchange-traded fund were “arbitrary” and capricious. If experts’ predictions about approving several Bitcoin ETFs this year come true, its decision could accelerate the next cryptocurrency bull run.

At the same time, exchanges must maintain adequate capital. Coinbase recently launched leveraged futures trading to non-U.S. customers, while Binance launched Polygon-based USDC, a move expected to attract enterprise trading revenue. #英国 #加密规则