EPayments Systems Ltd, a United Kingdom-authorized electronic money institution, must suspend online payment operations due to the Financial Conduct Authority'south anti-money-laundering (AML) procedures.

EPayments has released a curt statement on its website and has sent out emails to its customers to give a few details on the FCA'south regulatory checks. This regulation has frozen ePayments one million user accounts and has banned new account openings.

"Following discussions with the FCA, ePayments has agreed to suspend activity on client accounts until remedial activity has been undertaken to the satisfaction of the FCA."

The FCA has allowed ePayments to provide services including issuing virtual accounts with IBAN, prepaid cards, processing payments, issuing eastward-money and treatment electronic coin wallets throughout the European union since its initial launch.

Yet, with the electric current ban, customers volition be unable to transfer, deal, withdraw or deposit funds and will be unable to use their ePayments cards.

EPayments' history with cryptocurrency

The squad behind ePayments was involved with a crypto exchange Digital Securities Exchange early, when cryptocurrency was not regulated as heavily in the U.K. Early ePayments customers could utilise the platform to exchange fiat and crypto.

As ePayments users were obliged to pass KYC procedures and disclose ID information earlier setting up their accounts, the specifics behind the recent shutdown by the FCA remain unclear.

Cointelegraph reported concluding month that the Fiscal Conduct Authorisation (FCA) is now the United kingdom's sole AML authority for the crypto business. After a decade of compliance nether a laissez-faire approach to AML legislation, U.K.-based crypto firms at present face a significantly more than stringent set up of rules.