Deepcoin receives Bitcoin license in El Salvador, and the opportunities are not as rumored
Deepcoin, a cryptocurrency exchange founded in 2019, holds a Bitcoin Service Provider license from the Central Reserve Bank of El Salvador, allowing it to hold, trade, and exchange bitcoin with fiat currency and other cryptocurrency assets.
11/10/20263 min read
The deadline is a clause that ensures continuity.
February 28th is not a legal deadline. It's the date by which the FCA believes it can process the application before the regime begins, and the protection that comes with meeting this deadline is the ability to continue operating while under review.
That difference is the deciding factor for any bank undertaking this work. Missing the deadline means falling into a transitional agreement that the FCA hasn't detailed, with the potential for a gap between when the regime begins and when it's licensed. For a bank, the gap in licensing isn't an inconvenience; it's a period during which the regulated operation cannot legally be performed, meaning customers have to be notified to look elsewhere and then asked to return.
Therefore, the supervisory update is not an invitation but rather an announcement of the schedule. Banks planning to enter the field after October 2027 have approximately fifteen weeks to file their applications.
What does the list of activities reveal?
Custody, operation of trading venues, trading, arrangement, issuance and staking of stablecoins is a comprehensive list that aligns with an existing regulated operating framework, rather than creating a parallel cryptocurrency regime. A variation of the license is the common mechanism a company in the UK uses to add a regulated activity to its existing license, and its application here means the FCA is treating cryptocurrency asset services as supplemental activities to already supervised companies, rather than a separate licensing category.
This is a significantly different structure from the US approach. The SEC built the Innovation Exemption as a relief from existing requirements with a five-year term, and the OCC created a federal licensing roadmap for stablecoin issuers under a single act. The UK is expanding the scope and bringing operations within itself, which is slower, less flexible for companies without existing licenses, and significantly more sustainable once implemented. It also doesn't carry any of the loopholes left by the Loper Bright case that linked US rules to being built on agency authority without legal backing, because the UK regime is based on the rule of law.
The inclusion of staking is noteworthy, as it is the most difficult activity to classify anywhere. Calling it a regulated activity that banks can obtain permission to conduct resolved the issue in the UK before the US position.
Accelerate the process of tightening management.
This is a path being opened, not a wave of cryptocurrency banking products being launched. Permission depends on each company's specific proposal and the FCA's assessment, and nothing in the update suggests that approval is routine. The FCA has spent years rejecting cryptocurrency registrations under its anti-money laundering regime at a high rate, and licensing a wholesale bank is an even more rigorous assessment.
What this update confirms is that this path exists and has a timeline. A UK bank wanting to hold digital assets for institutional clients, or issue a stablecoin denominated in British pounds, now knows the mechanism and timeframe. Whether any bank will actually want to do so remains an open question, and the frank answer is that most major UK banks have been considerably more cautious than their US counterparts, where Citi has piloted custody services, JPMorgan accepts ETF collateral, and Bank of America is building a bitcoin credit product.
Assessment and Conclusion
The most useful signal between now and February will be which bank will apply, and that will primarily be revealed through customer communications and job postings rather than official announcements, as the application for change is not a public document. October 25, 2027 is still quite far away, so the real competition is securing a spot before then.
The second thing to watch is the issuance of stablecoins. A regime allowing a UK bank to issue tokens denominated in British pounds, in a market where the Bank of England has already made significantly more restrictive statements, is where the FCA's scoped approach and concerns about central bank monetary policy would have to be reconciled. That has yet to happen.
Disclaimer: The content in this article is for informational, research, data analysis, and reference purposes only regarding the cryptocurrency market. All opinions, assessments, forecasts, or opinions reflect the author's perspective at the time of publication and do not constitute investment advice, solicitations for buying or selling, trading recommendations, advertising, marketing, or promotion of any financial products, services, or cryptocurrencies. Mentions of projects, tokens, protocols, exchanges, wallets, or cryptocurrency service providers (CASPs) are for research, analysis, or informational purposes only and should not be construed as endorsements, recommendations, or guarantees in any way. HCCVenture does not broker, advertise, market, promote, or connect users in Vietnam with any cryptocurrency services from CASPs. HCCVenture does not accept asset custody, investment mandates, manage assets, or execute transactions on behalf of clients. All investment decisions are made entirely through the reader's own research (DYOR), evaluation, and responsibility; HCCVenture is not liable for any losses or damages arising from the use of or reliance on the information presented in this article.
Compiled and analyzed by HCCVenture
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