Cryptocurrency payments startup MoonPay is now registered with the United Kingdom’s Financial Conduct Authority (FCA). According to the FCA register, MoonPay (UK), a United Kingdom-based subsidiary of the start-up, was registered on December 9. MoonPay joins a list of 39 other registered cryptocurrency-related companies authorized by the FCA.
The new registration signifies that MoonPay complies with the UK's anti-money laundering and counter-terrorism financing (AML/CFT) rules. Additionally, it allows investors to file complaints about MoonPay with the Financial Ombudsman Service and potentially recoup their losses through the Financial Services Compensation Scheme (FSCS) if the company suffers a significant financial collapse.
MoonPay offers a non-custodial solution for buying and selling cryptocurrencies. Users receive purchased assets on self-custodial wallets, ensuring that MoonPay never holds user funds. MoonPay’s FCA registration reflects the company’s operations, noting that it is not authorised to hold user funds.
The latest registration marks another significant milestone for three-year-old MoonPay. In November 2021, the company raised a historic $555 million in a Series A funding round. The company is valued at $3.4 billion and claims to have over 7 million users across 160 countries.
UK FCA eyes protection for crypto investors
The FCA’s licensing regime for crypto startups started slowly under its temporary registration provisions. However, the regulatory body has since ramped up new registrations after making the process permanent, albeit with higher standards for prospective licensees.
MoonPay is the 40th company added to the FCA register and the tenth registered since the start of the year. Adding crypto firms to the FCA ensures greater investor protection and further legitimises the industry.
As previously reported, the FCA’s regulatory foothold on the crypto industry is currently limited. However, the agency’s jurisdiction looks set to increase under the new Financial Services and Markets Bill. The bill is currently under parliamentary review.
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