A Scottish cryptocurrency startup has received approval to be added to the Financial Conduct Authority’s list of registered cryptoasset companies.

Edinburgh-based Zumo, whose app allows users to exchange, store and spend cryptocurrencies, has become the 24th business to secure FCA registration across the UK.

Zumo’s inclusion also marks the first time a consumer-facing non-custodial crypto wallet has been granted regulatory approval, the FCA confirmed.

Co-founder and CEO Nick Jones believes the announcement marks a significant moment for the startup, which was founded in 2017 with the aim of improving access to digital currencies.

He said: “We’re delighted to receive this approval, which puts us in the small handful of businesses to have received FCA approval as a registered cryptoasset firm.

“Zumo takes a compliance-first approach, and this is an important milestone in our journey. We believe that the clear competitive advantage will be with businesses that act in good faith to ensure robust regulatory compliance.”

Jones added: “Looking forward, our primary focus remains on providing trusted, accessible solutions to our customers, and this provides us with the foundation to grow our services and offering in 2022.”

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Since January 2020, companies carrying out specific cryptoasset activities in the UK have been required to comply with regulations aimed at tackling money laundering and terrorist financing.

Organisations seeking approval to operate are required to register with the financial regulator and pass a rigorous assessment process.

Earlier this year, the FCA warned that a “significantly high number” of crypto firms were failing to meet the standard required under the money laundering regulations.

This led to an unprecedented number of firms withdrawing their applications, prompting the FCA to extend the temporary registration deadline until 31st March 2022.

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