The electronic payments provider ePayments is tapping the final nail in the coffin of its actions. On Sept.12, ePayments dispensed email notices to clients, affirming that it is officially closing its business operations in light of local regulations.
The financial services provider was one of the largest electronic payment providers in the United Kingdom. Though, nearly three years ago, it was ordered to stop operations by the U.K.’s Financial Conduct Authority (FCA) due to suspected weaknesses in its “financial crime controls.” At that time, it was assessed that ePayments held £127.5 million in customer funds, which were temporarily inaccessible.
After years of reformation efforts, the company finally bow down to “extremely challenging and unprecedented global economic conditions,” years of ceased operations, and being incapable to satisfactorily meet the FCA’s requirements.
It encourages former customers to say funds are safe and to withdraw funds in eWallets and stand by for refund information. On Twitter users’ response is a mixture of relief and frustration, with one user saying he had funds stuck in ePayments since 2020, while another tweeted to the company that his funds were still inaccessible.
This development comes as the U.K.’s financial regulators have been tightening the reins on the industry. The FCA recruited almost 500 new staff over the last year for its new three-year strategy.
One of the positions filled involved the newly created director of payments and digital assets which will supervise matters such as e-money, payment, and crypto-asset markets. The position was occupied by the previous director at the National Economic Crime Command.
While some regulators in the country have confidence that the U.K. cannot afford to send mixed signals as to its stance on digital assets and payment services, it still appears to be the case.
Kwasi Kwarteng, the newly appointed finance minister, has not addressed the crypto regulations and advertising watchdogs recently cracked down on crypto-related ad content on Instagram.
Similarly, the economic secretary made an announcement on Sept. 7 in which he said he wants to make the U.K. a crypto hub and topmost choice for innovators under the new prime minister.
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