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Ziglu launches peer-to-peer payments after getting UK e-money licence

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United Kingdom fintech Ziglu announced the launch of its peer-to-peer (P2P) payments service for both fiat and cryptocurrency on Sept. 7.

This follows hot on the heels of receiving both the U.K. Financial Conduct Authority’s (FCA) Electronic Money Institution licence, and the Fifth Money Laundering Directive (5MLD) licence last week.

Ziglu launched in June, with a vision to offer simple and secure access to any currency. The platform is undergoing continuous development and many more features are scheduled for the future.

Cointelegraph spoke to Ziglu founder and CEO Mark Hipperson about becoming fully licenced, P2P payments and future plans.

He described the licencing process as tough and time-consuming, but essential in establishing a respected position within the space.

The 5MLD regulators in particular required a lot of convincing, but were made more comfortable by the fact that Ziglu doesn’t currently allow transfers of cryptocurrency into and out of the ecosystem, thus avoiding the issue of not knowing where it has come from.

Instead, cryptocurrency can be bought within the app and transferred P2P with other users. This was to keep things simple, explains Hipperson, “although the 5MLD licence that we hold allows us to do all of the same things that a licenced exchange can, and third-party crypto transfers are certainly on the future road-map.”

Currently Ziglu supports Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH) and Ether (ETH), with XRP (XRP) being added in September, and then roughly one coin per fortnight after that as requested by customers.

The platform integrates multiple exchanges and when a customer wants to buy cryptocurrency will always search these for the best price. If this happens to be, for instance, a dollar price on Kraken, then Ziglu will convert the customer’s sterling into dollars and make the purchase instantly.

Fiat payments to and from third parties are already available.

As Cointelegraph reported when Ziglu was first announced back in January, multi fiat currency support and a debit card which converted crypto to fiat (again at best market rates) at point of sale were promised.

Debit cards have already undergone testing and are scheduled for launch later in September. Multi-currency support for users is coming in October, although currency conversion when buying crypto is already in place.

On top of all of this, crypto held with Ziglu is fully insured up to a maximum of 50,000 pounds:

“We are one of the only companies in the world which offers a £50,000 insurance policy on crypto held with us which is quite unique.”



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Regulation

New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.