Circle Internet Financial set off a wave of positive press last week when it revealed the news that it had become an electronic money institution registered under the Financial Conduct Authority (FCA) in the UK.
Though enthusiasm was high, there was confusion over the nature of the licensing and how it enables Circle to further its operations. Of note, is that the e-money license is not digital currency-specific, with the E-Money Directive being introduced in the UK in September 2009. The FCA, sources noted, is still debating how it will seek to regulate digital currencies in the UK .
However, the e-money license does now allow Circle to work with the UK Treasury on a process by which it will inform regulators in other European nations of the license in a bid that could find it expanding its fiat money services across the European Union.
For now, the licensure proved sufficient to enable Circle to establish a relationship with UK banking giant Barclays . As such, industry commentators were quick to voice their belief that the announcement would do much to improve the perception of bitcoin and blockchain technologies more broadly.
IDC Financial Insights research director James Wester, for instance, said the news was perhaps a sign that the idea is falling out of favor that blockchain and distributed ledgers would disrupt payments and banking, and that banks may now become key drivers of the emerging technology’s wider adoption.
Wester told CoinDesk: "Banks themselves are [now] exploring the potential for the technology. So over time I think you will see more connections and relationships between the community building up around blockchain technologies and financial service providers, vendors and regulators." Wedbush Securities analyst Gil Luria echoed this view, stating he believes Circle’s license would put pressure on global regulators, an opinion that was widely […]
