A cautious approach to cryptoassets by the UK financial services regulator risks holding back the sector's potential in Britain, although there is no lack of buzz about the industry in London, according to the founder and head of BCP Technologies, the first FCA-registered crypto firm to launch a sterling-denominated stablecoin. Benoit Marzouk told MLex there are concerns over how long it is taking the FCA to get regulation over the line.
A cautious approach to cryptoassets by the UK financial services regulator risks holding back the sector's potential, although there is no lack of buzz about the industry in London, according to the founder and head of the first crypto firm registered with the watchdog to launch a sterling stablecoin. BCP Technologies, which has been registered under the FCA’s money laundering regulations as a cryptoasset firm since 2021, applied in February last year to launch a sterling-denominated stablecoin, getting the go-ahead after 14 months.
Named Tokenised GBP, or tGBP, the stablecoin spent one month in the FCA’s regulatory sandbox, where it was only available to existing clients of the company's exchange, BCP Markets, but was launched to institutional and retail investors on Wednesday last week (see here).
BCP Technologies' founder, Benoit Marzouk, detailed to MLex in a recent interview industry concerns about how long it is taking the FCA to get regulation on stablecoins over the line.
His motivation to launch a stablecoin came from the regulator’s working discussion paper published in November 2023 (see here), which contained most of the key elements of how it should look, he said. Yet just last month, the FCA opened a new consultation on stablecoin issuance and cryptoasset custody (see here), with final rules not expected to be in place next year.
“For a lot of people in the industry, it’s frustrating to have this over two or three years," Marzouk said.
The FCA's approach in this second consultation "is very thorough and meticulous, but there is a risk of overregulation, particularly concerning reporting requirements and cryptoasset custody, which could be counterproductive, as one of blockchain’s key features is the ability for users to self-custody their assets,” he said.
Marzouk also voiced disappointment that the crypto sector was still approached from a negative angle, for example through “over-exaggerating" the FTX bankruptcy, which he said was a corporate fraud and not systemic to Bitcoin or underlying crypto technology. FTX, once one of the world's largest crypto exchanges, collapsed in November 2022 after reports emerged about improper use of customer funds.
“The [FCA] consultation also fails to acknowledge existing consumer protection frameworks, as if everything must be redrafted from scratch,” he said.
— Long road —
The process of becoming an FCA-registered cryptoasset firm and then launching a stablecoin was anything but straightforward, Marzouk said. “We worked really hard to become registered,” he said.
Only around 10 percent to 15 percent of firms that apply to register under the FCA’s money-laundering regulations are successful, with the vast majority withdrawing their application along the way.
But going through that process hasn’t led to his firm having a competitive advantage in the UK, he said.
Since October 2023, crypto businesses wishing to target UK consumers have had to comply with the FCA’s financial promotions regime. The FCA registration allows cryptoasset firms to advertise their products and services to UK consumers. But unregistered firms can also advertise to UK consumers by paying an FCA-authorized approver to approve their promotions. That, Marzouk says, is “quite unfair.”
“Foreign exchanges pay an approver up to 1 million pounds to be able to include a tagline on their website ‘this marketing has been approved by’ and comply with few other very basic points, but there's absolutely no screening of the operations and controls in place,” he said. "[While] cryptoasset firms like us had to work for 18 months, sometimes even more, to become registered.”
With a background in trading, including six years with Credit Suisse in London, Marzouk refocused on financial technology and cryptoassets after the UK's Brexit vote meant he would be posted to Ireland.
“I was always attracted to start-ups, and to having my own company. I fell in love with Bitcoin and the whole idea of decentralization,” he said. “With my background as a securities lending trader, I understand the settlement challenges that stablecoins can help address. Also, I’ve always been very aware of the importance of regulation and the value of becoming FCA-registered."
Each tGBP token is backed one-to-one by reserves held in a segregated account at a UK-regulated financial institution and is fully redeemable for sterling at any time.
For crypto businesses in the UK, it’s not only the regulator that approaches them with caution. Some operators have had a difficult time opening and maintaining bank accounts, making everyday business activities challenging, after the FCA told banks in 2018 they may want to consider enhanced due diligence checks on crypto clients.
Marzouk said it was “very difficult, especially back in 2018,” when the platform went live. He described losing his personal account with a mainstream retail bank despite having banked with it for 10 years.
"The fact that we [BCP Technologies] are FCA-registered has helped to open the door to some of the more crypto-friendly banks," Marzouk said. "There’s also possibilities to use [electric money institutions] for non-registered companies. It’s not impossible, but it is expensive.”
The industry has been lobbying the government and regulators to make access to banking easier for crypto businesses. Last month, financial services minister Emma Reynolds acknowledged their concern and said the government was engaging with the banking sector over the issue (see here).
Marzouk said a thriving UK crypto industry could help to counter the dollarization of the world. But, he warned, “if they don’t allow UK firms to experiment a bit, everyone is going to use USDT or USDC," referring to US stablecoins issued respectively by Tether and Circle.
An FCA spokesperson* said: “We are committed to supporting the growth and competitiveness of the UK’s crypto industry while delivering appropriate levels of market integrity and consumer protection. We are currently consulting on various aspects of our regime in line with our Crypto Roadmap.”
While the FCA has indicated in its roadmap that it has no intention of finalizing crypto and stablecoin rules before the end of 2026, it has had to wait on the government to propose legislation to bring crypto activities within its regulatory perimeter, which happened at the end of April (see here).
“London remains very attractive. The city is full of energy, there are events and conferences every week, and you meet bright, passionate people. There’s always something happening, making it one of the best cities in the world for crypto because of this vibrant atmosphere.”
*Updated on June 13, 2025, at 15:35 GMT: Adds FCA comment and legislation detail.
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