GlobalBlock Digital Asset Trading Ltd (TSX-V:BLOK, OTC:BLVDF) has provided an update on the pending application by the company's wholly-owned UK subsidiary, GlobalBlock Limited, for registration as a crypto asset business with the Financial Conduct Authority (FCA) in the United Kingdom.
Over the past few weeks, the company said, it has had regular correspondence with the FCA regarding its application and has decided that a withdrawal from the FCA process is in the best interests of its clients and shareholders, with a view to reapplying at some point in the future.
A 60-day extension for GlobalBlock UK under the temporary registration regime has been agreed with the FCA to ensure the company has a smooth transition to becoming a European-based Virtual Asset Service Provider (VASP).
GlobalBlock, therefore, also announced that, in conjunction with the above decision and fitting with its plans to expand the customer base beyond the UK, it has incorporated GlobalBlock Europe UAB in the European Union jurisdiction of Lithuania.
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Thie company said this means that GlobalBlock UK will remain registered under the FCA's temporary regime in the UK until May 25, 2022, during which time the company will be registered as a VASP in Europe. This will ensure all client assets and trading services will continue as normal and accounts will be transitioned into a more crypto friendly regime.
GlobalBlock said it remains committed to the highest of regulatory standards, employing stringent policies and procedures in respect to Know Your Customer, Anti-Money Laundering and Anti-Terrorist Financing.
In a statement, Rufus Round, CEO of GlobalBlock, said: "Our client-centric approach has meant that the recent FCA developments have had little to no impact on the business in terms of clients' loyalty to the brand. GlobalBlock is dedicated to offering the best-in-class digital asset product solutions and crypto asset trading services and we are very aware that this nascent industry is subject to certain regulatory uncertainties."
"We look forward to transitioning them seamlessly to GlobalBlock Europe and the company's roadmap for growth remains intact, with plans to upgrade our technology soon. In turn we will be able to open further product offerings and opportunities for the business. The potential for MiCA and European crypto regulatory passporting is an exciting prospect that will open a huge market for us," he added.
GlobalBlock also confirmed that it has formally adopted the new Articles of Association that were approved by the shareholders of the company in accordance with the Business Corporations Act (British Columbia) at the December 31, 2020, meeting of shareholders.
The purpose of implementing these was to modernize the company's Articles and better align them with recent legal and regulatory developments and market practice by TSX Venture Exchange listed companies.
The major changes from the former Articles included the adoption of "advance notice" provisions, updates to the mandatory indemnification provisions and certain "housekeeping" amendments that were intended to clarify and simplify the Articles.
GlobalBlock Digital Asset Trading Limited provides a personalised telephone brokerage service, trading platform and mobile app. Established in 2018 by an experienced team of financial services professionals, the company acts as a trusted agent serving the digital asset needs of individuals, corporates, institutional financial firms and intermediaries, providing best execution trading and safe custody of digital assets.
Contact the author at jon.hopkins@proactiveinvestors.com