UK’s FCA imposes restrictions on e-money firm AstroPay
The UK’s Financial Conduct Authority (FCA) has imposed a series of constraints against e-money firm Larstal Limited, which trades as AstroPay, with a specific emphasis on the protection of consumer funds.
Astropay enters “voluntary undertaking” with FCA
Having entered into a “voluntary undertaking” with the regulator, Larstal has been blocked from “accepting any new customer funds, providing payment services… or issuing or redeeming e-money”.
The firm must also “refrain from onboarding any new customers” and “ensure that all relevant funds are appropriately ringfenced in a designated safeguarding account(s)”, the FCA says.
Should it seek to operate this remit, it must first obtain the written consent of the FCA, with the enforcement actioned with immediate effect from 11 April.
Via a statement posted on its website, AstroPay describes the measures as “temporary”, adding that “we are working to resume normal operations soon”. The firm did not return FinTech Futures‘ request for comment.
Licensed as an FCA e-money institution (EMI) since December 2019 and trading in the UK from the following July, Larstal operates a global e-wallet service through AstroPay which provides consumers and businesses with a suit of payment capabilities, including peer-to-peer (P2P) money transfers, virtual and physical debit cards, and savings accounts.
The FCA’s regulatory clampdown coincides with the publication of a report by Bloomberg which suggested that the firm owes several million dollars to its creditors. Its latest financial statement, made up to 31 December 2022, indicates that Larstal owes its backers just over $22 million.
