Wirex, the London-based cryptocurrency and fintech firm, has announced that it will no longer take on new UK-based customers after discussions with the jurisdictional regulator, the Financial Conduct Authority.
It has been reported that the decision to temporarily halt UK sign-ups was apparently voluntary; it did follow hot on the heels of “constructive dialogue” with the FCA.
However, UK residents will no longer be allowed to sign up for Wirex’s services. Moving forward, Wirex will dedicate attention and resources to strengthening its 5AMLD (Fifth Anti-Money Laundering Directive) compliance protocols in line with the latest guidelines laid down by the FCA.
The report said that the FCA announced its intention to ban all cryptocurrency derivatives trading in October 2020. By January the ban had gone into effect, and its impact was soon felt as cryptocurrency derivatives exchanges began to close down services for UK customers.
Pavel Mateev, the co-founder and CEO of Wirex, said that the FCA had made suggestions on how the firm could update its operational procedures.
“The FCA have, in dialogue with us, made suggestions on how we can implement changes to our operational procedures, which we welcome and intend to follow […] We fully endorse the Khalifa Fintech Review findings about growing the UK-based fintech ecosystem and see ourselves as an integral partner in achieving this.”
The firm stated that new UK residents who try to sign up will be added to a waiting list for the time being.
Wirex claims to have 3.5 million registered users around the world, and offers access to over 150 different currencies, both crypto and fiat, through its app and Mastercard-powered debit card.