On 28 January 2021, the Financial Conduct Authority (FCA) published a consultation paper (CP21/3)
1 proposing various changes to the UK regulation of payment services and electronic money. Most of the proposed changes relate to clarification or expansion of the existing FCA guidance contained in the document “Payment Services and Electronic Money – Our Approach” (Approach Document). There are also proposed changes to the substantive regulatory requirements.
The consultation closes on 24 February 2021 in respect of the proposed changes to the contactless payment limits (see below); it closes on 30 April 2021 with respect to all other aspects.
We discuss here the key proposals and their potential implications.
DNA Payments Group: DNA Payments Acquires Active Merchant Services
DNA Payments Group (DNA), a fast-growing vertically integrated payments company, acquired Active Merchant Services (also known as Active Payments) a UK-based independent sales organisation with more than 2,500 merchants. This acquisition brings DNA s customer base to c. 30,000 merchants and 57,000 terminals in the UK and EU with the actual processing volumes of transactions to over £5.5 billion per annum. This transaction marks DNA s third acquisition in the last 14 months as it plans to further expand in its core markets with more acquisitions in different segments of payments value chain planned for this year.
Nurlan Zhagiparov, director of DNA Payments added:
Wednesday, January 20, 2021
The Cross-Border Payments Regulation (EC) No 924/2009 (CBPR) is the EU legislation that sets out the principle of equality of charges for intra-EU cross-border euro payments and corresponding national payments within an EU member state. CBPR has been amended by Regulation (EU) 2019/518 (Amending Regulation), which extends the equality of charges principle to any non-euro currency of an EU member state and inserts new transparency requirements on currency conversion charges. CBPR applied directly in the UK until 31 December 2020.
CBPR (as amended by the Amending Regulation) has, since 1 January 2021, been “onshored” into UK law following the end of the Brexit transition period, with amendments, and we refer to the UK’s implementation of CBPR in this alert as UK CBPR.
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Regulation of crypto-ventures and crypto-tokens remains a murky area, with differing regulatory approaches globally and a shifting landscape that makes doing business more complex and increases the risks that market participants face. This note aims to clarify the current state of crypto regulation in the United Kingdom to help those seeking to establish new cryptoventures or transact in crypto-tokens comply with the law and avoid any regulatory pitfalls.
1. UNDERSTANDING THE LANDSCAPE TYPES OF CRYPTO-TOKENS AND CRYPTO-VENTURES, AND ARE THEY REGULATED?
Fortunately for crypto-market participants, UK legislators and regulators have recognised the benefits of clear rules to promote the growth of the market, encourage innovation and ensure best outcomes for customers. The Financial Conduct Authority (FCA) remains the main regulator for crypto-ventures and crypto-tokens in the United Kingdom. To come under the FCA s regulatory perimeter under the Regulated Activities Order (RAO), a cryp