By
Andy Watson
April 26th, 2024
MoonPay has secured FCA UK registration and will now comply with all financial regulations laid down by the regulator.
Digital currency payment platform MoonPay recently secured registration with the Financial Conduct Authority (FCA) in the UK. As of Friday, the UK regulator had registered the firm, which signifies compliance with local money laundering rules for MoonPay.
More on Recent MoonPay UK Registration
The MoonPay registration with the UK regulator sees the crypto payments infrastructure company join several other similarly business-minded companies. These include digital currency exchange Bitpanda, financial infrastructure provider Tullet Prebon, and fintech platform Revolut. Together, these companies have attained a vital status that eluded several other companies within the crypto space. According to a recent disclosure by the FCA, only 5% of applications received under a revised crypto sector registration regime were satisfactory. As the FCA’s executive director for markets, Sarah Pritchard, further noted to the House of Common Treasury’s lawmaking Committee:
“73% of applications have either been withdrawn or have failed. That is the most significant withdrawal or failure rate that we’ve had when taking on a new remit such as this.”
As it stands, the FCA wields limited oversight over the crypto assets industry. However, the British financial regulatory body expects to receive new powers upon enacting the Financial Services and Markets Bill.
Yuga Labs, MoonPay Class Action Lawsuit
In other recently-reported MoonPay news, the crypto fintech company faces a class action lawsuit alongside BAYC creator Yuga Labs. The class action grievance alleged that Yuga Labs took undue advantage of a vast network of celebrities to promote their NFT collection. In addition, the lawsuit mentioned MoonPay as a complicit front operation for the scheme.
The document, filed by John T. Jasnoch on December 8th last week, stated:
“This case epitomizes these concerns as it involves a vast scheme between a blockchain start-up company, Yuga Labs, Inc. (‘Yuga’), a highly connected Hollywood talent agent (Defendant Guy Oseary), and a front operation (MoonPay), who all united for the purpose of promoting and selling a suite of digital assets.”
Furthermore, Jasnoch remarked on the trend of crypto companies leveraging their Hollywood connections to promote crypto assets without complying with disclosure requirements. Such requirements entail disclosing the “nature, source, and amount of any compensation paid, directly or indirectly, by the company in exchange for the [celebrity] endorsement.”
The lawsuit named a total of 40 individuals and companies as defendants. These include pop legend Madonna, musicians Snoop Dogg, Diplo, Justin Bieber, and Post Malone. The list also includes tennis icon Serena Williams, comedian Jimmy Fallon, and socialite Paris Hilton.
Meanwhile, Yuga Labs is also facing a broader investigation by the US regulators regarding the NFT market. These regulators are trying to ascertain whether the BAYC creator sold certain NFTs similar to stocks. In addition, the ongoing investigation also wants to determine whether such sales would violate federal laws.
MoonPay Soulbound NFT Loyalty Program
On December 2nd, MoonPay announced plans to offer its customers a soulbound NFT loyalty program. This development is an attempt by the company to leverage the rising popularity of NFTs in the crypto space.