24 Oct 2017
UK startups working with distributed ledger technology are having problems accessing traditional banking services, according to a report issued last week by the UK Financial Conduct Authority.
The financial regulator, which runs a regulatory sandbox to allow new types of companies to test “innovative products, services and business models in a live market environment,” reportedly witnessed startups in its fintech testing framework being blocked from opening accounts.
The FCA did not name the startups involved or the banks that denied them services.
As the report stated: “We have witnessed the denial of banking services first-hand across a number of firms in the first two cohorts of the sandbox. Difficulties have been particularly pronounced for firms wishing to leverage DLT, become payment institutions, or become electronic money institutions.”
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