Issuing blockchain currency is legal! Tramonex becomes the first blockchain company authorized by the UK government

On February 13, the UK government regulator, the Financial Conduct Authority (FCA), has granted London blockchain startup Tramonex the right to launch a blockchain-based currency in the UK.

The approval of Tramonex marks the first blockchain technology company to obtain Electronic Money Institution (EMI) authorization from the Financial Conduct Authority (FCA).

What does it mean to be an Electronic Money Institution (EMI) Authorised Firm?

In 2011, the Financial Conduct Authority (FCA) issued electronic money regulations for some financial service providers and institutions, allowing them to operate as money transmission companies and payment service providers. If a company wants to be approved by the Financial Conduct Authority (FCA) and obtain EMI authorization, it must fully comply with local regulations, security requirements and notification requirements.

In order to become an EMI authorized firm in the UK, startups need to allocate significant resources and funds to ensure that their operations do not conflict with any Financial Conduct Authority (FCA) regulations.

Once a startup receives EMI authorization, it can start issuing, distributing, and redeeming e-money. This means that blockchain startups like Tramonex can issue a legal blockchain currency and launch applications or services on its infrastructure.

Lack of transparency and privacy

While users can be assured of the legitimacy of Tramonex’s blockchain services and payment network, there is a limitation to EMI-authorized operator financial services, which is the lack of financial privacy.

At the request of the Financial Conduct Authority (FCA), startups that obtain EMI authorization need to provide compliance reporting information to comply with the regulatory and reporting obligations of the Financial Conduct Authority (FCA). Although there is no specified type of information, the Financial Conduct Authority (FCA) can require companies to submit any form of data that the agency may need, such as users' financial and personal information.

Marc Avedissian, co-founder of Tramonex Labs, said:

“Automating payments using blockchain and smart contracts will reduce transaction costs and has applications in many different sectors such as insurance, real estate, and government, to name just a few. Previously, the shortcoming of blockchain has been a lack of regulation. We are honored that Tramonex Labs can provide a compliant environment where digital payments can be executed in a secure and transparent manner.”

Tramonex’s approval as an EMI company is a positive sign for the UK’s blockchain industry. In the future, if more and more blockchain companies and developers can obtain regulatory licenses from the government, they will be able to operate in a more transparent and regulated system.