DAG Global Eyes Becoming UK-Licensed Crypto Bank

Financial services company DAG Global is planning to gain a UK banking license to fill the gap between crypto businesses and banks.

Reported by the Financial Times on Monday, the London-based firm is working to resubmit its license application next month and, if approved, it is eying to launch its services next year.

In the UK, both the Financial Conduct Authority (FCA) and the Prudential Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term Authority (PRA) were cautious with the banking industry's links with the volatile crypto trading. Though neither put any restrictions on banks, they issued clear warnings against criminal activities using digital assets.

No clear stand with regulators

DAG Global submitted its application last May; however, due to regulatory roadblocks, the process was significantly delayed. This also delayed the company's previous plans to launch its services last year.

Sean Kiernan, CEO of DAG, also revealed that the company had several rounds of "constructive dialog" with the regulators and did not receive any red flags on its proposal.

He is also optimistic with the crypto industry in general and believes that "it's a lack of understanding and reputation risk that has kept others away — we think it can be a cleaner sector [than mainstream finance]"

Crypto companies have long been deprived of proper banking services around the world. Many banking startups are now targeting the industry. In the US, Silvergate Bank re-established its business, only focusing on digital asset companies. The same trend is also going on in the UK as baking startups like Cashaa popped up.

"We're being approached on a daily basis by corporates in the space because people are fed up with what they're faced with to meet basic business banking needs at the moment," Stephanie Ramezan, chief commercial officer at DAG, told the publication.

Meanwhile, the FCA has assumed new roles to supervise the crypto industry in the country over Anti-Money Laundering (AML) Anti-Money Laundering (AML) Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Read this Term) and counter-terror financing (CTF) initiatives. It also made registrations compulsory for the crypto businesses.