The FCA License
Things have take another positive turn in the UK with the Cryptocurrency industry as a third company is issued with a Financial Conduct Authority (FCA) license for e-money. The digital economy really is in a boom situation at the moment with regulation already being finalised on the Cryptocurrency industry and Blockchain technology start ups being actively encouraged.
In this latest news we see the FCA give the go ahead to Crypto Debit Card supplier Wirex. The license means that the company can operate legally providing full Crypto Debit Card services. As highlighted above, this is only the third firm that has been blessed with this particular licence and Wirex has already tweeted its delight at the news. This E-money License allows the owner to do a number of things in the 23 European Union countries it is allowed to work in including distributing International Banking Numbers, looking after client funds in segregated accounts as well as providing exchange services too. The new pre-paid Cryptocurrency debit card allows holders to spend, receive and purchase.
The Company Wirex
London-based Wirex didn’t start out this way back in 2014, in fact the company was named E-Coin when it was founded by Pavel Mateev and Dmitry Lazarichev. However a couple of years ago, the company opted for a complete rebrand and started operating under the Wirex brand. By this time last year, the firm had gone from strength to strength with not only $1 billion transactions recorded but also 800,000 users were on their books.
The company is in an unusual position in the Cryptocurrency industry because it is one of the few that did not launch an Initial Coin Offering to raise the necessary funds to run its projects. Instead, the company is owned privately. A wonderful attribute.
FCA And Cryptocurrencies
The positive news regarding Wirex comes on the back of a recent E-Money License being granted to Coinbase back in March of this year. Coinbase was then able to work with not only UK banks but also EU institutions too. This resulted in millions of customers having the ability to buy Cryptocurrencies using British Pounds and Euros for the first time.
Although there are very tight regulations – understandably – around the E-Money License it is worth its weight in gold once it has been secured. The E-Money License has a turnaround of over 90 days which is pretty extensive but it does give the authority the necessary time to make the checks needed to keep tabs on what is going on. The organisation already keeps a tight check on fintech and Blockchain companies constantly to ensure everything is above board.
Although it is great news that another E-Money license has been given out it does not suggest even slightly that the agency will let go of the reins when if comes to regulations. It has in the past – and is likely to continue with – handed out Cryptocurrency public warnings. It is fantastic to see that regulations are holding firm and they are certainly needed to keep the industry running smoothly and investors being kept safe.