FinTech Futures: Top five stories of the week – 28 April 2023
Here’s our pick of five of the top news stories from the world of finance and tech this week.
Binance.US pulls out of Voyager asset acquisition citing “hostile” regulations
Binance.US nixes Voyager acquisition deal
Crypto exchange Binance.US has pulled out of a deal to acquire beleaguered US-based crypto lender Voyager Digital’s assets.
Binance.US says it has made the “difficult decision” to terminate the $1.022 billion deal, which was initially announced at the end of last year, citing “the hostile and uncertain regulatory climate” in the US as its reason for pulling out, claiming the country has introduced an “unpredictable operating environment impacting the entire American business community”.
Voyager Digital, which filed for bankruptcy protection last year, reached an agreement with the Voyager Official Committee of Unsecured Creditors and the US government on 19 April for the purchase to go through, Cointelegraph reports.
In December, when the Binance.US-Voyager deal was announced, it was revealed that should the deal not close by 18 April 2023, subject to a one-month extension, the agreement allows Voyager to immediately move to return funds to customers.
Platform One snaps up £1bn worth of assets from SIPP operator Gaudi
Platform One has acquired Gaudi Trustees Limited and the £1 billion worth of assets managed by self-invested personal pension (SIPP) operator Gaudi Limited.
The deal comes as Gaudi Regulated Services Limited has entered administration, with Sean Bucknall and Andrew Watling of Quantuma Advisory Limited appointed as joint administrators.
A note from the UK’s Financial Conduct Authority (FCA) reads: “Gaudi was subject to several upheld final decisions from the Financial Ombudsman Service regarding some of the investments it allowed within its SIPPs. Gaudi’s board of directors recognised the financial liabilities associated with these decisions and other potential Financial Ombudsman decisions.
“Having obtained the advice of insolvency practitioners and concluded that the firm is insolvent, the board decided to place the company in administration.”
Earlier this year, FT Advisor reported that the FCA had imposed an asset restriction on Gaudi Regulated Services which required the firm to get written consent from the regulator prior to selling any assets.
With the deal, Platform One will leverage the acquired technical and administrative expertise to launch its own SIPP platform.
Mastercard’s SVP of open banking Jim Wadsworth departs
Jim Wadsworth leaves Mastercard
Jim Wadsworth is stepping down from his role as senior vice president of open banking at payments giant Mastercard after more than five years, with Bart Willaert set to lead the firm’s international open banking team.
Wadsworth joined Mastercard in 2017 following its acquisition of Vocalink, where he had served as the company’s UK product director.
At Vocalink, which builds and processes bank account-based payment systems, he helped establish a new group to develop anti-financial crime solutions.
For the last five years, Wadsworth has led Mastercard’s open banking ambitions, helping to kickstart the company’s journey into what he calls a “key arena” with the acquisitions of Finicity in the US and Aiia in Europe.
EU crypto “travel” regulations pass European Parliament vote
The European Parliament has waved through the first EU rules designed to trace cryptoasset transfers and beef up consumer protections.
The European Union’s Markets in Cryptoassets (MiCA) regulation will require crypto firms to register in one of the EU’s member states, before allowing them to operate across the bloc.
Stefan Berger, lead MEP for the MiCA regulation, says: “Consumers will be protected against deception and fraud, and the sector that was damaged by the FTX collapse can regain trust.”
The European Banking Authority and the European Securities and Markets Authority will ensure crypto firms are playing by the rules, which include adopting risk management and governance processes.
The regulation aims to ensure that crypto transfers, as is the case with traditional financial services, can be traced and suspicious transactions blocked.
Schroders slashes valuations of UK neobanks Revolut and Atom Bank
Schroders devalues its stake in Revolut by 46%
Revolut shareholder Schroders Capital Global Innovation Trust, part of asset management firm Schroders, has cut the valuation of its stake in the neobank by almost half – suggesting $15 billion (£12 billion) could be wiped off its $33 billion valuation.
In its annual results, the Trust has marked down its Revolut shareholding by 46%, down to £5.4 million from £10.1 million last year. In July 2021, Schroders invested £9.9 million into Revolut as part of its Series E funding round.
Schroders has also marked down its stake in another UK challenger, Atom Bank, by 31%. However, the asset manager is positive about its outlook for the firm.
“We are encouraged with the operational progress at Atom Bank. The business continues to scale up and is now profitable,” Schroders says.
