Lightning Network-based payment platform, Bottlepay today announced it has received approval from the United Kingdom’s Financial Conduct Authority (FCA) to operate as a crypto asset business.
The approval makes Bottlepay the first Lightning Network-based firm to obtain an FCA registration.
For a crypto asset firm to receive such authorization from the FCA, it must acquire personal information from customers by complying with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.
“Our registration with the FCA is an achievement not just for Bottlepay, but for the Lightning Network… This registration goes to show that we can build the financial infrastructure of the future while upholding the regulatory and compliance standards of today,” Bottlepay founder Pete Cheyne said.
Recall that late last year, Bitcoin company New York Digital Investment Group (NYDIG) acquired Bottlepay for an undisclosed fee in a bid to integrate the latter’s Lightning Network infrastructure into its Bitcoin platform.
According to the report, NYDIG had previously invested in Bottlepay during its seed funding round.
Speaking on the development, Yan Zhao, President of NYDIG said:
“We are incredibly proud of what the Bottlepay team has accomplished… Securing FCA registration is a breakthrough event and is a testament to NYDIG’s and Bottlepay’s commitment to compliance. Together with Bottlepay, we will continue to work hard to make the Bitcoin network accessible to all.”
Registration Tussle
Bottlepay, which was established in 2019 and headquartered in Newcastle upon Tyne, England, has encountered several regulatory issues with European regulators.
Back in 2019, just six months after it was founded, the company announced that it would shut down its operations.
The firm noted that it will cease operations due to the introduced European Union’s 5th Anti-Money Laundering Directive (5AMLD) which states that crypto-asset firms will need to obtain personal information from users, and that is not suitable for its mode of business.
Today’s announcement means that Bottlepay has amended its business model to comply with regulations and will now operate as a licensed crypto-asset firm.
