Wirex, a wallet firm based in London, has temporarily ceased the registration for the new clients after the constructive dialogue by the regulators of the Financial Conduct Authority (FCA) of the United States.
The Chief Executive Officer (CEO) and the Co-founder of the Wirex Wallet firm Pavel Matveev shared that they had a meeting and prolonged discussion with the representatives of the Financial Conduct Authority (FCA) in which one of the suggestions was under consideration that how changes could be implemented in the United States while keeping operations undisturbed by following the procedures recommended by FCA. Moreover, they said that it is acknowledged that London is the capital of fintech, and recommendations given by the FCA would entertain us to have a comfortable environment for operations.
The halt of new registration is going to come into effect from the 24th of March, 2021. Moreover, CEO Pavel Matveev stated that any U.K residing customer who is going to register for the crypto wallets after the due date, which is 24th of March, 2021, will not be entertained rather will be considered as pending or on the waiting list.
Currently, there are more than 3 million customers who are having registered wallets with Wirex. They all are of the same view. They are of the view that the cease of new wallets sign-up is taken deliberately, and they seemed to be contented with it. As they believe that this halt is for security purposes as the core purpose of this initiative is to strengthen the compliance protocols to align according to the 5th Anti-Money Laundering Directive (5AMLD).
The Financial Conduct Authority (FCA) has begun to oversee the crypto firms attached with 5AMLD rules coined in the last year, January 2020, as that was the accurate time when it squeezed out the crypto assets’ customers.
Experts had already intimated to the crypto firms that they will be having only a year to get fully registered, but later on, they had to halt the signups temporarily due to the excessive flow of applications being received for the wallet signups. But, still, just four fully registered entities are working in the market till today. Keeping all this in view, the state of affairs has just prompted the renowned trade body, the CryptoUK addressed to Chancellor Rishi Sunak to intercede.