London-based cryptocurrency and financial technology company Wirex has announced that it will no longer handle new customers in the UK after talks with the judicial regulator, the Financial Conduct Authority.
The decision to suspend subscriptions in the UK appears voluntary, according to a Wirex press release on March 24, but follows a “constructive dialogue” with the FCA.
As of March 25, UK residents will no longer be able to register with Wirex Services. Going forward, Wirex will devote attention and resources to strengthening the 5 AMLD (Fifth Anti-Money Laundering Directive) protocols in line with the latest FCA guidelines, the company said.
The Financial Conduct Authority (FCA) announced its intention to ban all trading in cryptocurrency derivatives in October 2020. In January, the ban came into force, and the effect was quickly felt when exchanges for cryptocurrency derivatives began closing down services for UK customers.
Pavel Matiev, co-founder and CEO of Wirex, said the Financial Conduct Authority (FCA) has come up with suggestions on how the company can update its operating procedures:
The Financial Conduct Authority (FCA), in dialogue with us, has made suggestions on how we can change our operating procedures, which we welcome and intend to follow […] We fully support the results of the Khalifa Fintech review regarding the development of financial technology in the United Kingdom. The ecosystem and we see ourselves as an important partner in achieving this goal. ”
The company said new UK residents trying to sign up would be added to the waiting list for now. Wirex claims to have 3.5 million registered users worldwide and provides access to over 150 different currencies both via the app and through the Mastercard debit card.