Crypto wallet Wirex resumes UK signups after consultation with FCA

abdelaziz Fathi

Payment and crypto wallet provider Wirex today said it will resume its operation in the UK, nearly three months after it threw in the towel on getting approved by the Financial Conduct Authority (FCA).

wirex

Wirex is back to serve British customers following discussions with the UK regulator, it said in a blog post.

London-based cryptocurrency and fintech firm had been part of the FCA’s temporary register. Although this status allows it to operate in the UK while awaiting a final decision from the watchdog, it abruptly halted UK signups in March. The decision to temporarily stop onboarding Britons was apparently voluntary.

However, Wirex, which claims to have 250,000 UK customers, didn’t withdraw its application altogether following consultation with the jurisdictional regulator.

The company offers a mechanism to spend, receive and purchase cryptocurrency via a prepaid debit card. The platform currently supports over 50 altcoins which can be readily converted to euros, dollars, and pounds at point-of-sale via an in-app API.

Earlier in 2019, Wirex secured an E-money License from the UK’s Financial Conduct Authority, which allows the Fintech firm to freely operate in 23 countries from the European Union.

Only 32 cryptocurrency-related companies are currently registered with Britain’s financial regulator. However, there are dozens of other crypto firms registered under the Temporary Registration Regime list. Uphold itself was listed on the FCA’s temporary crypto-asset business register.

UK tightens grip on crypto

Since January 2020, the City watchdog has become the anti-money laundering and counter terrorist financing supervisor of UK’s crypto asset firms. At the time, the FCA kicked off a registration scheme for crypto-asset firms with an initial deadline of one year.

However, nearly 70 crypto businesses had withdrawn earlier submitted filings for registration as the country tightens its regulation on the space. By retracting their applications, these firms had to cease operation in the UK, though more than 200 firms are still being assessed by the FCA.

Meanwhile, the UK Government plans to toughen up rules on crypto advertising that could be considered misleading. The Exchequer is proposing to bring the promotion of crypto-assets into the scope of the FCA’s existing oversight, rather than creating a new framework specifically for these products.

Citing concern over investor protection, the HM Treasury said that even companies that sell regulated investments with an underlying cryptocurrency element might need FCA authorization to do so depending on their activities.

Read this next

Digital Assets

Wirex launches crypto loans with LTV of up to 80%

The recent market collapse hasn’t stopped Wirex from pursuing its crypto loan offering allowing users to borrow up to $100,000.

Digital Assets

Chainalysis and Cellebrite to launch integrated solution

As a result of this cooperation, examiners, investigators, analysts, and compliance officers will be able to seamlessly identify illicit cryptocurrency-related activity in a single place as part of their familiar digital investigation workflows.

Executive Moves

Gate.io hires ex-Google Tom Yang for brand building

Gate.io has appointed Tom Yang as Executive Vice President (EVP) to gradually carry out its global brand building and market development.

Digital Assets

What if Ripple loses and XRP is deemed a security?

The outcome of the Veritaseum case could provide guidance to XRP holders looking for answers about what will happen to their assets.

Executive Moves

BestEx Research taps Paul Merolla as General Counsel

He has served as General Counsel at institutional broker Instinet Group and was Associate Counsel at Goldman Sachs.

Industry News

eToro announces termination of SPAC deal amid “circumstances”

“We ended Q2 2022 with approximately 2.7 million funded accounts, an increase of over 12% versus the end of 2021, demonstrating continued customer acquisition and retention rates that have been improving over time. We remain confident in our long-term growth strategy and excited for the future of eToro.”

Digital Assets

EU crypto regulation limits privacy to 1,000-euro threshold

MiCA complements existing AML rules and aims to enhance financial stability and investor protection in Europe.

Retail FX

GKFX Prime adds MT4 and MT5

In April, GKFX launched a proprietary trading platform.

Industry News

UEZ hits the Korean market

On the 8th to 10th of June 2022, the team from UEZ Markets attended the breathtaking Smart Tech Korea 2022 expo in the wonderful city of Seoul

<