Cryptocurrency RegulationNews

Wirex Stops Signups For UK Residents After Dialogue With FCA

The UK digital asset space would no longer be able to signup with Wirex due to a temporary halting of registration for the region. The digital payment platform recently announced that it would have suspended the registration of new users from the UK after a dialogue with the region’s authority known as Financial Conduct Authority (FCA). Wirex said that it has voluntarily paused the acceptance of registrations from new users from the 24th of March.

Wirex explained that this move is only temporary, and it is due to the constructive dialogue it had with Financial Conduct Authority (FCA). This is not surprising as the UK government is not very impressed with cryptocurrency and has warned citizens from getting involved in the asset class as its volatility makes it a highly risky investment.

Wirex restricts the registration of new UK users

The halt, which started yesterday, means that new UK-based users interested in registering for Wirex services would no longer be given access. This period would give the firm enough time to work on its Anti-Money Laundering Law Directives (5AMLD), which would help it comply with the region’s laws on money laundering. Wirex said that the procedure would help it ensure transparency in financial transactions in the company.

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The payment company explained that the authorities suggested ways to change its current operational procedures through a press release. The firm added that it would be following the authority’s suggestion.

The firm’s CEO and co-founder, Pavel Matveev, said that the firm believes that London is the fintech industry’s capital and that the region’s suggestions will help the firm have a more stable environment where it can operate in. Despite the halt, the CEO explained that UK-based users can join a waiting list as the suspension is still active.

The UK regulations for crypto products are known to be harsh as authorities have prohibited crypto derivatives for retail users within the region. The authorities believe that the financial product isn’t suitable for retail users, especially with the high rate of financial crime, price volatility, and other factors.

Wirex plans to launch in the USA

One of the top executives in FCA, Sheldon Mills, explained that the ban of crypto derivatives for retail users shows how it understands the harm the product poses to small-scale users. The regulator added that consumer protection is essential there.

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Despite Wirex’s plans to restrict new UK-based users, the firm has continued to grow in the global community as one of the prominent firms within the space. The firm continues to expand to other parts of the world even as it is based in the UK.

Some months ago, the firm had partnered with Visa and became a principal member of the card company. This facilitates the firm’s move of issuing Visa accounts while settling transactions as it plans to the official launch in the United States. The company’s move to the USA would be significantly different from the UK’s. The former is known to have friendlier crypto policies than the latter, especially with many crypto-friendly leaders at the helm of affairs.

Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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