As the Financial Conduct Authority (FCA) recently confirmed that more than 2.3 million people in the UK own cryptocurrencies of some kind, it comes as no surprise that another company has been added to the regulator’s crypto-assets register, with London fintech app Mode Global Holdings becoming the fifth company to be added.
Together with the Mode, the FCA now has Archax, Ziglu, Digivault and Diginex in its crypto layer and it isn’t a shock considering recently Bank of England officially stated that cryptocurrencies are not considered to be traditional money and, therefore, do not represent a systemic risk to the banking ecosystem stability.
However, the BoE, together with FCA issued a range of warnings regarding the possibility of money laundering. Companies were first told to get registered or halt their trading by January. However, the deadline has been changed to March 31, 2022.
Mode is already traded on London Stock Exchange with a market cap of approximately $61 million as it managed to secure its Electronic Money Institution license through Greyfoxx Limited. Another Mode subsidiary, Fibermode Limited, is the company that has been also added to the FCA’s crypto register.
The company’s CEO Ryan Moore stated that securing key registration from FCA gives them an opportunity for growth.
🚀 We’re happy to announce that @thgplc will be using #Mode as a payments option from Q3 with a fantastic selection of brands! This will allow Mode users and THG customers to make instant payments, earn Bitcoin rewards, and receive personalised offers all in one app! pic.twitter.com/vfnVVjGxrM
— Mode (@modeapp_) June 14, 2021
The company also issued a statement that says registering with FCA brought “renewed focus” for building a payment application using a connected Bitcoin cashback product.
Mode’s chairman Jonathan Rowland stated that the company spent the whole year managing the security and compliance and that the trust from the regulator means that they were doing a good job.
All of this important if we know that after the UK left the bloc, its cryptocurrency regulations were still implementing laws similar to the EU’s Markets in Crypto-assets (MiCA). Still, a few months ago, the Bank of England said it considers making a “new form of digital money for use by households and businesses” that exists together with traditional ways of payment.
However, now it shows the UK is experiencing a surge in the popularity of cryptocurrencies, showing that there is a new era of digital payment turning this country into a potential crypto-oasis.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.