Ziglu, a budding UK challenger was recently awarded the Electronic Money Institution license by the UK’s FCA. The bank received the license on September 1, 2020, over a year after applying for it in May 2019. Ziglu has now launched a P2P payments platform for fiat and crypto.
Services Offered by Ziglu
The platform is now regulated and users can use it to securely send and receive payments. Mark Hipperson, who is the CEO, founded Ziglu. Previously, he co-founded and worked as CTO at Starling Bank, another popular challenger bank in the UK and Europe.
On Ziglu, users can trade BCH, BTC, LTC, and ETH. There are plans to add support for XRP by the end of September 2020. Besides these digital currencies, the P2P platform will also support the pound sterling. To support its operations, users will be charged a 1.25 percent commission on their trades. At the end of June, Ziglu announced that it had raised £5.25 million in seed capital and would seek to raise more funds via crowdfunding.
Obtaining the License Was Not Easy
According to the Ziglu CEO, obtaining the license had not been easy. During the application process, the crypto team at the FCA also reviewed their application since they plan to handle crypto. All of the services offered by Ziglu comply with AMLD5 rules. Besides that, the platform has enforced strict KYC requirements for all of its clients.
The platform has insurance cover for all crypto deposits on the platform up to £50,000. According to Hipperson, their goal is to add a hundred million customers to the platform with the next seven years. To achieve this lofty goal, the platform will expand its service offering.
In the next few weeks, Ziglu plans to launch a debit card powered by MasterCard. The card will make it possible for users of the platform to spend both fiat and crypto holdings at stores. In the future, they will launch other services such as loans, interest-earning accounts, and overdrafts.
However, their current EMI license limits them to only a small number of services. The reason for this is that an EMI is not the same as a full banking license.