By George Ward
Recently, a digital payment application, MoonPay, has received regulatory approval in the United Kingdom. According to reports, the UK’s Financial Conduct Authority (FCA) greenlighted the payment giant’s application.
According to reports, MoonPay will now operate under the jurisdiction of the FCA. As a result, the payment app must also comply with the regulator’s anti-money laundering practices.
Meanwhile, MoonPay is the 40th crypto-based service firm with regulatory approval from the FCA. The company offers users a tool to make crypto-based payments.
MoonPay’s digital payment app currently supports more than 300 digital assets, including BTC and ETH. The company operates in more than 160 different nations globally, with over 5 million active users.
Surprisingly, most crypto-related firms cannot get a license to operate in the UK. However, apart from MoonPay, other crypto-driven entities that have gained a crypto license in the UK include Revolut, Gemini, Bitpanda, and eToro.
The FCA does not have total jurisdictional control over the crypto sector. As a result, the agency is still limited in its operations. However, the upcoming Financial Services and Market Bill promises to extend the agency’s jurisdictional power.
Last week Wednesday, officials of the FCA had a meeting with the lawmakers of the House of Commons Treasury Committee. The meeting report revealed that out of the applications received for a temporary crypto license, only 5% met the agency’s standard.
According to Sarah Pritchard, the FCA’s Exec Director, 73% of these crypto license applications were withdrawn or failed. The Director argued that this is the highest failure or withdrawal rate the agency has witnessed.
Crypto Regulation In The UK
Meanwhile, this is not MoonPay’s first regulatory approval. The crypto payment giant is already registered in the US. Its registered arm in the UK operates under MoonPay (UK) Limited.
The crypto sector has gained huge attention in recent years. This is because more technological upgrades and innovations are rising every day.
Hence, several countries and regions, such as LATAM, are opening their doors to crypto payment options. Even though the crypto sector is advancing, the issue of regulation has become a major concern due to recent events.
The United Kingdom is one such country with a comprehensive policy to regulate the crypto sector. These regulations are aimed at protecting investors and the broader financial economy.
Meanwhile, the United Kingdom has not been very strict with its crypto regulation. However, its case differs from other nations that have adopted a harsh stance towards the sector.
In the United Kingdom, crypto firms can operate after completing the necessary registrations. However, those crypto entities that operate without a license are usually sanctioned according to the law.