MoonPay, a crypto payments app valued at $3.4 billion, has received the UK's Financial Conduct Authority (FCA) license. The company appeared on the 'Registered Cryptoasset Firms' list on 9 December 2022 and is the 40th cryptocurrency service provider authorized by the financial watchdog.
The company, which builds payments infrastructure for cryptocurrencies, is currently active in 160 countries, cooperating with more than 300 digital wallets, serving five million customers and investors.
MoonPay is registered in the United States, while the United Kingdom's subsidiary operates under a London-based branch, Moonpay (UK) Limited. The company's addition to the list of authorized cryptocurrency service providers confirms compliance with the UK's Money Laundering, Terrorist Financing and Transfer of Funds Regulations (MLRs).
Although the FCA does not yet regulate cryptocurrencies, as most do not fall under the Financial Services and Markets Act 2000 (FSMA), digital asset service providers must comply with the MLRs and be authorized by the regulator since 2020.
The fairly short list of registered cryptocurrency companies includes the crypto exchange, Gemini, trading platforms, Bitpanda and eToro, and the neo-banking firm, Revolut. As confirmed by Sarah Pritchard, the Executive Director for Markets at FCA, obtaining the regulator's crypto authorization is not easy. Nearly 75% of applications are rejected or withdrawn.
"That is the most significant withdrawal or failure rate that we have had when taking on a new remit such as this," Pritchard told the House of Commons Treasury Committee.
In 2021, MoonPay closed one of the biggest funding rounds in the history of crypto assets. It has secured $555 million in its Series A investment round, including 60 high-profile investors and celebrities like Justin Bieber, Ashton Kutcher and Gal Gadot.
Crypto Regulations under the Financial Services and Markets Bill
However, the FCA powers to oversee the crypto industry are currently limited to MRL compliance , the House of Commons recently agreed on a decision that may change the face of the local digital assets industry for good. In October, the UK's parliament lower house decided to regulate cryptos as other financial instruments under the Financial Services and Markets Bill.
The voted bill is only a draft and has a long administrative road ahead before it becomes law. It must be approved by the House of Lords, the upper house of the British parliament, and finally endorsed by King Charles.
Initially, the bill guaranteed the right of financial supervision over stablecoins, but amendments passed in October extend the FCA's mandate to all cryptocurrencies.
Meanwhile, the European Union (EU) is working on its own set of cryptocurrency regulations. The Markets for Crypto-Assets (MiCA) bill could become the first document to regulate digital assets in Western economies, and it is estimated to take effect in 2024.
