FCA Approves NYDIG Subsidiary to Operate as a Crypto Firm in the UK
Bitcoin payments platform Bottlepay, a subsidiary of the New York Digital Investment Group (NYDIG), has obtained registration from the UK’s Financial Conduct Authority (FCA).
Bottlepay Gets FCA Approval
In a press release on Tuesday (January 11, 2022), Bottlepay’s registration was granted approval by the FCA to operate as a cryptoasset business in the United Kingdom. According to the announcement, Bottlepay is the first Lightning Network-based company to receive such permission from the UK regulatory watchdog.
Bottlepay, a UK-based company, allows users both in the United Kingdom and Europe to transfer micropayments of bitcoin and fiat currencies such as the euro and pound sterling, using Lightning Network. Customers can also send funds via social media platforms like Twitter, Discord, and Reddit.
In October 2021, the crypto custody and investment company NYDIG acquired Bottlepay for an estimated $300 million in shares. Earlier in February, NYDIG participated in the startup’s funding round led by billionaire hedge fund manager Alan Howard, which raised £11 million (~ $15 million).
In response to the latest development, Pete Cheyne, founder of Bottlepay, said:
“Our registration with the FCA is an achievement not just for Bottlepay, but for the Lightning Network. This registration goes to show that we can build the financial infrastructure of the future while upholding the regulatory and compliance standards of today.”
The FCA earlier mandated that all cryptocurrency businesses looking to operate in the UK would have to comply with the anti-money laundering (AML) and counter-terrorist financing rules. Meanwhile, the rigorous process has seen only a few cryptocurrency businesses successfully register with the UK regulatory agency.
FCA’s Strict Registration Policies
Back in December 2020, the FCA established the temporary registration regime (TRR) for companies that have pending applications with the agency. Although the TRR was later extended to March 2022, the UK watchdog stated that most cryptocurrency businesses did not meet the criteria.
Bottlepay’s FCA approval, however, is an indication that the startup fulfilled the necessary requirements. Another crypto company, Crypterium, also got the FCA registration in October 2021.
“Securing FCA registration is a breakthrough event and is a testament to NYDIG’s and Bottlepay’s commitment to compliance,” NYDIG Yan Zhao stated, adding: “Together with Bottlepay, we will continue to work hard to make the Bitcoin network accessible to all.”
