Obtaining FCA Licensing for a Fintech Startup in the UK

Background

A European fintech startup specializing in digital banking and payments aimed to expand into the UK but needed FCA approval to operate legally.

Challenges

• Meeting the UK Electronic Money Institution (EMI) licensing requirements.

• Ensuring AML/KYC compliance under FCA regulations.

• Establishing a legal framework for consumer protection.

Solution

Treasure Well Law Associates facilitated the licensing and compliance process:

1. Assisting in applying for an FCA e-money license under PSD2 (Payment Services Directive 2).

2. Implementing AML/KYC compliance protocols to meet FCA standards.

3. Advising on terms and conditions for UK-based customers, ensuring GDPR and FCA compliance.

Outcome

• FCA approval was granted within 6 months, allowing legal operation in the UK.

• The startup successfully launched, acquiring 50,000+ UK users within the first year.

• The fintech company secured £5 million in VC investment post-licensing.