Komal Joshi · Oct 24, 2020 . 6min read
UK’s Ziglu Mobile Banking App Introduces P2P Payments for Crypto and Fiat Currencies
Ziglu, UK's challenger bank has enabled P2P payments to support transfer of crypto and fiat currencies from one wallet to another.
By Komal Joshi · Sep 7, 2020 . 6min read
Earlier today, Ziglu, one of the UK’s newest challenger banks, declared the launch of peer-to-peer (P2P) payments for crypto and fiat currencies supported by the Ziglu mobile app. Ziglu will now provide P2P payments since it became authorized by the UK’s financial regulator FCA (Financial Conduct Authority) as an EMI (electronic money institution) following the Electronic Money Regulations 2011 (EMRs).
Ziglu launched in June to provide simple and secure access to any currency. The platform is experiencing constant development. Additionally, many more characteristics will unveil in the future. According to the Ziglu bank, one can send cryptocurrency to other people and buy and sell crypto from its mobile app. However, it further states that one cannot transfer crypto to regular cryptocurrency wallets. Nevertheless, one can only send it to other Ziglu customers.
Ziglu Bank Supports Various Cryptocurrencies
Ziglu currently supports bitcoin, ether, litecoin, and bitcoin cash. However, XRP will be added later this month. The platform says it will list other digital assets based on consumer demand. While an EMI license authorizes Ziglu to perform some of the functions associated with traditional banks, it isn’t the same as a full banking license. It doesn’t give the platform the capability to issue loans or to offer interest on balances. Services like loans, overdrafts, interest-earning accounts, and insurance products are also on the radar in the future. However, it is significant to consider crypto assets, and the FCA does not regulate crypto-asset services offered by Ziglu. They do not have the corresponding regulatory protections as e-money/payment services.
Ziglu founder and CEO Mark Hipperson elucidated about peer to peer payments and plans. He said the licensing process is tedious and consumes a lot of time. However, it is significant in securing a respected position within the space. He says that the process demonstrates that FCA chooses companies that will take governance, compliance, risk management, and customer data solemnly.
He said that the regulators require a lot of convincing. Hipperson elaborates that FCA’s crypto team reviewed Ziglu’s licensing application since it provides both fiat and crypto services. It also had to comply with the fifth anti-money laundering directive (AMLD5) rules. Following the directions, the licensing process took three to four months.
Additionally, the crypto deposits on Ziglu are also insured up to £50,000 (around $66,000). Notably, the platform charges 1.25% as commission on trades. Hipperson unveiled that Ziglu aims to bring a hundred million consumers over the next six or seven years and develop its product range to achieve this.
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