Oct 8, 2020

UK FCA bans sale of cryptocurrency to retail customers

FCA
Cryptocurrency
Bitcoin
Ripple
William Girling
2 min
Following an extensive consultation, the UK Financial Conduct Authority (FCA) has banned the sale of crypto assets to retail customers
Following an extensive consultation, the UK Financial Conduct Authority (FCA) has banned the sale of crypto assets to retail customers...

Following an extensive consultation, the UK Financial Conduct Authority (FCA) has banned the sale of crypto assets to retail customers.

Having examined investment and value trends, the organisation cited the price volatility, high incidence of market abuse and ties to online crime of popular cryptocurrencies such as Bitcoin, Ether and Ripple. The FCA’s complete list of grievances included:

  • Crypto has no reliable basis for valuation
  • A general lack of understanding among retail consumers
  • Overall lack of “need” to invest in such products 

Furthermore, the FCA calculates that banning the marketing, sale and distribution of cryptocurrencies could save approximately £53m, with Sheldon Mills, interim Executive Director of Strategy & Competition, stating: 

“Significant price volatility [...] places retail consumers at a high risk of suffering losses from trading crypto-derivatives.

“This ban reflects how seriously we view the potential harm to retail consumers in these products.”

A controversial decision

Due to come into effect on 6 January 2021, the ruling has been a source of controversy for some commentators.

Nigel Green, CEO and Founder of deVere Group, lambasted the FCA’s decision as “misguided” and betrayed a fundamental misunderstanding regarding cryptocurrencies’ place in the modern economy. 

“While the FCA is not stopping people buying Bitcoin or other cryptocurrencies directly, it is banning the sale of products based on their prices.

“The staggering pace of the digitalisation of economies and every aspect of our lives highlights that there will be a growing demand for digital, global, borderless money.

“However, rather than banning, the FCA should be regulating the booming and unstoppable sector.”

Indeed, with tech and financial heavyweights like Facebook, Visa and JP Morgan exploring the possibilities of cryptoasset management, Green’s intimation of the technology’s ‘inevitable’ presence in the modern economy seems well-founded.

However, with both sides of the argument advocating for reform, the FCA’s ruling may simply be the impetus for defining more clearly the vision and goals of crypto.

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Jul 28, 2021

Nymbus enters strategic partnership with Plaid

Fintech
NYMBUS
Plaid
Digitalpayments
2 min
Nymbus has partnered with Plaid to help meet customer demand for connecting to digital finance apps

Nymbus, a leading provider of banking technology solutions, has partnered with Plaid, a data network powering the digital financial ecosystem, to more instantly authenticate and fund customer bank accounts for financial institutions. 

This new integration will allow Nymbus bank and credit union clients to securely onboard new users in a matter of seconds, which in turn translates to more active and engaged banking experiences. Plaid’s data network enables consumers to connect their financial accounts at over 11,000 institutions globally to more than 5,000 digital finance apps, including leading payments, investing, and budgeting tools.

 

What are the benefits of the integration?

 

Benefits of the Nymbus and Plaid integration for financial institution customers include:

  • Improve user identity verification and reduce fraud.
  • Instantly authenticate and link members’ bank accounts.
  • Streamline ACH transfers between any bank or credit union in the US.
  • Access and analyse comprehensive transaction data.
  • Validate real-time account balances to protect against overdraft and enable account pre-funding.

“As more consumers than ever before rely on digital finances for their everyday lives, financial institutions need to meet their customers where they are while supporting safe and reliable money management experiences,” said Sarah Howell, Chief Alliance Officer at Nymbus. “Our expanding network of partners are important contributors to Nymbus’ combined portfolio of the technology, people and process available to quickly innovate with new routes to market and revenue streams.”


 

Continuous growth and expanding partnerships

 

Founded in 2015, Nymbus has continued to grow. Most recently the company has closed a new round of financing led by the Curql Fund. The US$5 million investment will be used towards Nymbus CUSO and accelerate a shared commitment to breakthrough technology for ensuring continued growth and stability for the credit union community.

Nymbus CUSO was founded in March 2021 to help break through barriers to growth, and its mission is to connect credit unions with trusted fintech offerings that both simplify technology delivery and enable new digital revenue opportunities.

Last year Plaid set a goal to move 75% of its traffic to APIs by the close of 2021, calling it “one of our top priorities as the industry moves full-steam ahead toward a fully digital financial system.”


Recently it has announced an open finance partnership with Capital One, a digital finance innovator, and the successful completion of its migration to the Capital One API. They have also completed or have in-motion data access agreements with major US financial institutions, including U.S. Bank, JPMorgan Chase, Wells Fargo, and others.

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