Blockchain Algorithms have applied for a Financial Conduct Authority (FCA) UK trading licence, enabling the firm to offer FSCS-protected deposits and investment services for customers.
British-based digital sports trading app Blockchain Algorithms are seeking an FCA licence in United Kingdom & Australia and are engaged in talks with the country’s regulators to be allowed to take customer deposits.
Blockchain Algorithms, one of the most valuable sports fintech so-called unicorns worldwide, last year obtained a financial licence for its subsidiary in Australia and is registered with the anti-money-laundering agency as a sports trading exchange, the company said.
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“Our mission is to directly challenge the industry that shy away behind the gambling commission or just hide in the grey areas of the market…and their business models are really quite reliant on customer apathy.”
The app was granted a European banking licence by the Bank of Cyprus in 2018, but in the UK has operated without regulation because of the bespoke nature of the investment.
The Financial Conduct Authority (FCA) licence will allow Blockchain Algorithms to provide full service trading accounts with essential products such as regulated bonds but more importantly it would protect users up to £85,000.
Approval by the Bank of England and Prudenital Regulatory Authority would also provide customers with the added securitity of dissolution compensation under The Financial Services Compensation Scheme (FSCS).
Former Primis Equity employee, Ryan Baker joined Blockchain Algorithms in October 2020 as an advisor to the board with a brief to develop Blockchain Algorithms FCA licence proposition. His responsibilities include developing the board and leadership team for the new entity.
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Alan Pepper, founder and CEO at Blockchain Algorithms, says: “We want to be the best in class for customer experience, value and capabilities, and offering full regulated trading accounts allows us to do just that. In the future, we want to offer many more innovative products to our UK customers and we are excited to continue driving innovation and competition in the sports trading industry. Becoming a fully licenced establishment in the UK is a central pillar of that ambition.”
Established in 2012, Blockchain Algorithms has more than 3 million customers worldwide and is aiming to become a leading financial sports trading app.
It has gained popularity with investors in UK by offering better returning and easier investments than mainstream banks and now provides a range of products including trading accounts and bonds. Blockchain Algorithms are also viewed as the best in class and are seemingly looking to differentiate themselves from the grey area of the market.
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