Bitpanda, an Austrian digital asset exchange, has acquired Trustology, according to a statement by Bitpanda. The move aims to bring in-house custody services for digital assets. Bitpanda stated:
“We’re thrilled to welcome Trustology to Team Bitpanda! As one of the fastest-growing Fintechs, international expansion and growth are at the top of our agenda. With this acquisition, we’re offering a safer, faster, easier, and more accessible route for institutions and individuals to access crypto markets — not to mention a competitor-beating pricing model!”
Bitpanda said that it will commit to offset custody fees, bringing them down to zero for users on Bitpanda. The company added that a custodial wallet ill increase users safety and trust noting that Bitpanda will now be able to perform “regulated custodian services in the UK also significantly expands our range of services.”
The UK Financial Conduct Authority (FCA) has followed the announcement of the acquisition with a statement of its own.
In an email, the FCA stated:
“We are aware of recent statements made by Bitpanda announcing the acquisition of Trustology Limited (Trustology).
Trustology is a cryptoasset business which the FCA registered under the Money Laundering Regulations (MLRs) in October 2021. As a result of the transaction, Bitpanda has become the new beneficial owner of Trustology for the purposes of the MLRs.
The MLRs do not include any provisions that allow the FCA to assess the fitness and propriety of beneficial owners or changes in control before a transaction is completed. This position differs to other regimes that give FCA the powers to supervise, authorise or enforce against firms operating in the UK.
The FCA can take steps to suspend or cancel the registration of a cryptoasset business if it is not satisfied the firm or its beneficial owner is fit and proper.
The FCA also has powers to suspend or cancel a firm’s cryptoasset registration on a number of grounds, including where a firm has not complied with obligations under the Money Laundering Regulations.”
As far as we know, this is the first time the FCA has issued such a statement in regards to one crypto firm acquiring another.
The FCA did point out that Bitpanda GmbH is a registered digital assets service provider with the Austrian Financial Market Authority (FMA) and with the French Autorité des marchés financiers (AMF) and thus regulated in Europe.
Bitpanda facilitates both trading in crypto as well as other asset classes like stocks. It reports more than 3 million users.