Digital Banking Startup Targets UK License to Serve Crypto Firms

A London-based startup says it needs to turn out to be the “first digital property service provider financial institution” within the U.Okay.

In response to its web site, DAG World goals to “ship next-generation service provider banking options to the underserved fintech, digital and SME sector.” That’s, nonetheless, as soon as it has acquired a banking license within the nation.

DAG has already had one go at successful the license. Whereas its 2018 software wasn’t profitable, it has since had “constructive dialogue” with British monetary watchdogs, the Prudential Regulation Authority and the Monetary Conduct Authority, based on a Monday report from the Monetary Occasions.

It now plans to resubmit the applying subsequent month with a view to providing financial institution accounts to crypto corporations from subsequent yr.

The U.Okay. banking sector has been notoriously averse to serving corporations within the trade reminiscent of cryptocurrency exchanges. Within the earlier days of crypto, U.Okay.-based trade purchasers have been pressured to make use of SEPA banking transfers through European banks to fund their accounts. And although that scenario has eased barely , even outstanding and established corporations like Coinbase have nonetheless had issues, with Barclays pulling help final yr.

Companies within the U.Okay. trade are “fed up with what they’re confronted with to fulfill primary enterprise banking wants in the meanwhile,” DAG Chief Industrial Officer Stephanie Ramezan instructed the FT.

As such, DAG hopes to enhance the scenario and be part of the very small variety of monetary establishments, reminiscent of Clearbank and its associate BCB Group, formally licensed – and prepared – to serve the native crypto house.

“It’s a lack of information and popularity danger that has saved others away. We expect it may be a cleaner sector” than conventional finance, CEO Sean Kiernan stated within the report.

This time round, Kiernan seems hopeful the regulators will move the applying, saying they’ve raised no “crimson flags” throughout discussions.