The cryptocurrency industry has gained more traction in recent years. More technological innovations and upgrades are also springing up in the space. Hence, many people have plunged into the crypto market as they intend to reap growing profits through a diversified investment approach.
But while the crypto space is advancing, criminal activities are also on the rise. So, some jurisdictions enacted regulatory rules to monitor the activities of digital asset-related firms. Also, they aim to protect users and participants in the digital asset space.
Cryptocurrency regulation in some countries is becoming increasingly stricter. For example, some regions will only allow the operation of crypto-related companies if they complete the regulatory registration. They could also sanction the firms that fail to comply with stipulated laws within the country.
In a new development, MoonPay, a digital payments app, has received the UK’s crypto regulatory license. According to the report, the firm completed its registration with the Financial Conduct Authority (FCA) of the UK. The payments app now complies with the regulator’s local money laundering rules.
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Crypto Payment Processor Gets UK License
MoonPay appeared on the FCA’s register. As a result, the company now stands as the 40th crypto service provider to gain the approval of the UK regulator.
MoonPay offers a programming interface for customers. This handles several procedures for customer identification and helps to control fraud. In addition, it builds a payments app for digital assets and is operational in 160 different countries worldwide. It has more than 5 million users and several collaborations with over 300 digital wallets.
Notably, several crypto-related firms and infrastructure providers have failed in their moves to gain the regulator’s license. By receiving the approval, MoonPay has joined other fortunate ones such as trading platforms eToro and Bitpanda, digital asset exchange Gemini and Revolut, a neo-banking firm.
UK FCA Records Most Significant Rate In Registration Failures And Withdrawals
Currently, the FCA has restricted jurisdictional control over the digital asset industry. However, it anticipates extended operational powers once the UK lawmakers enact the Financial Services and Market Bill.
The FCA officials spoke with the House of Commons Treasury Committee lawmakers on Wednesday last week. They reported that just 5% of applications received under a new temporary registration regime for the crypto sectors met the standard.
The FCA’s executive director for markets, Sarah Pritchard, reported that 73% of applications either failed or were withdrawn. The director noted that the value is the most significant withdrawal or failure rate the regulator had witnessed during intakes of new remits.
Before now, MoonPay was registered in the United States. Its United Kingdom’s registered arm is operating under a London-based branch of the firm, MoonPay (UK) Limited.
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Author: Ana N.