UK Crypto Financial Service Provider Becomes First ‘Authorised Payment Institution’ By FCA
A British crypto company similar to Bitstamp, Galaxy Digital and Coinbase was awarded a license for payments by the UK Financial Conduct Authority (FCA).
The announcement was made on Monday, by the BCB Group. It’s saying that BCB Payments Ltd., a subsidiary of BCB Group, is the first and only UK crypto company to be registered as an Authorized Payment Institution.
Banks in UK Aren’t Too Keen on Crypto Firms
Since British banks don’t really want to work with crypto companies, BCB stands as the only option for cryptocurrency enthusiasts. It has mentioned that it provides B2B payment services like cryptocurrency market liquidity and business accounts for some of the largest crypto financial institutions in the world. This is what the CEO and founder of the BCB Group, Oliver von Landsberg-Sadie, had to say about the latest FCA license award obtained by BSB Payments:
“This regulatory approval for our firm, a leading crypto-dedicated payment service provider, is a testament to how we’re able to push ahead with digital asset innovation while remaining in full compliance with some of the most stringent regulations in force globally.”
BCB Payments Already Registered as a Small Payment Institution
BCB Payments hasn’t been a stranger to the FCA, as it has been registered as a Small Payment Institution with the regulator ever since June 2018. Becoming an Authorized Payment Institution is more like an “upgrade”. The Swiss BCB OTC Trading SARL has also been regulated by an organization which is self-regulated, with the supervision of the Swiss Financial Market Supervisory Authority (FINMA). With the new license, BCB Payments expects to gain new international clients from both Switzerland and the UK.
BCB Group Working with ClearBank
The problem with banks in UK being reluctant to the crypto space came into attention in July 2019, when Coinbase had to put the transactions denominated in the British pound on hold because it was dropped by Barclays. In October, it reinstated its services, after closing a partnership with ClearBank. The BCB Group is also collaborating with ClearBank to offer British clients the UK Faster Payments scheme. In July last year, BCB started to provide this service for the crypto exchange Bitstamp.