The United Kingdom’s Financial Behavior Authority (FCA) announced today the cancellation of Param@ UK Ltd’s registration as a small online money institution in accordance with the 2011 E -Financial Regulations (“The Emrs”).
The business no longer meets the terms of registration as semi -below EMR. Specifically, the company failed to take sufficient measures to ensure the funds of electronic money holders.
The company was registered by the FCA as the semifinals on December 15, 2020. As a prerequisite for its registration, the company is obliged to take sufficient measures to ensure the funds of the electronic money holders.
On September 25, 2023, the Company was informed that the security account, which it had for the purposes of securing the funds of e -money, had to be withdrawn.
On November 13, 2023, the company was informed that the Assurance Account will be withdrawn on 30 April 2024.
Between November 15, 2023 and February 21, 2024, the Authority gathered the operation for its progress for the supply of new security measures. The company assured power that it was certain that it would have finalized immigration into a new assurance account by March/April 2024, that is, before the current security account retires.
On February 26, 2024, the business informed the Authority that it decided to stop the issuance of electronic money and turn its business model into a platform acquiring the trader.
On April 8, 2024, the Authority sent a letter to the business raising its concerns about the business not to meet the conditions for its registration if it did not have sufficient safeguard measures and asked the company to sign a voluntary business by agreeing to stop issuing online money and boarding new customers. The company signed the company on April 15, 2024.
On April 30, 2024, the Authority reiterated its concerns about the operation that it does not have sufficient security agreement and was therefore unable to respond to its registration conditions from 1 May 2024.
On May 15, 2024, the Authority again increased its concerns about the business that it does not have sufficient assurance arrangements. In response, the business requested a 3 -month period to make a change in the business model from the merchant to the dealer and to supply a sufficient protection provider.
Between August 19, 2024 and August 29, 2024, FCA corresponded to the business, creating concerns that the company has made little progress affecting the change in the business model and called on the business to cancel its registration by noting that the change in business model would not include the issuance of electronic money.
However, the company said it wished to maintain its empty to maintain the flexibility for future expansion in the provision of electronic money services.
Between October 7, 2024 and October 23, 2024, the Authority increased its concerns with the business, in many cases, so as not to issue electronic money and not to have the relevant checks to do so. The company has been further informed that, as its new proposed business model would not include the issuance of electronic money, it should cancel its registration as a semi -registered and applied either as an authorized payment institution or as a payment institution.
The company again reiterated its answer that it wished to maintain its registration, as it may be required for future business activities.
On 12 February 2025 the Authority issued the business a letter before the action. The letter informed the business that, as it did not meet the terms of registration as a semi -a recommendation to cancel its registration. The company was again invited to voluntarily cancel its registration.
The responses of the business of 24 February 2024, March 5, 2025 and March 7, 2025, did not deal with the concerns of the Authority raised in LBA in relation to the inadequate security arrangements and do not respond to the terms of registration. The company’s answers have not proven to power that it has taken sufficient measures to protect the capital of the electronic money holder. The company was subsequently informed on March 11, 2025, that the enforcement action to cancel its registration as a semi -EMI will continue.
On April 3, 2025, the Company submitted a change in the control alert. This did not change the position of the Authority.
The cancellation is effective on July 7, 2025.