How are my e-money funds protected?

As a customer of BVNK*, your e-money funds are protected in the unlikely event that BVNK, or one of our partners, becomes insolvent. 

 

Please note that safeguarding rules apply to e-money funds held in your BVNK wallet, and do not cover crypto assets. For information on how BVNK keeps crypto assets secure, please speak to a member of our team.

 

How we keep your funds safe is determined by the laws of the country where we provide you services. The BVNK Group (‘BVNK’) holds a number of licences and permissions, either directly or indirectly, to offer payment services:

 

United Kingdom

In the UK, System Payment Services Limited, part of the BVNK Group, is authorised and regulated by the Financial Services Conduct Authority under the Electronic Money Regulations 2011 (Firm Reference 901057) to issue electronic money (e-money) and provide payment services.

BVNK* is required by law to protect your funds that have been received in exchange for electronic money, also known as e-money, by segregating them from its own funds, in a separate safeguarding account with a bank, or protecting it with an insurance policy or similar guarantee.

This means your funds are protected in the unlikely event that BVNK becomes insolvent. 

Please note, the Financial Services Compensation Scheme (FSCS) does not apply to the issuing of electronic money. For more information on safeguarding rules, see the FCA’s guidance.

 

Europe

In the EU, System Pay Services (Malta) Limited, part of the BVNK Group, is authorised and regulated by the Malta Financial Services Authority under the Financial Institutions Act (Chapter 376 of the Laws of Malta (LEI Code 984500640Z8ADE893D04) to issue electronic money and provide payment services. 

BVNK* is required by law to ensure that your ‘relevant funds’ are appropriately ‘safeguarded’. There are different ways in which this can be achieved. Currently, BVNK uses the ‘segregation method’ which means that relevant funds received by BVNK corresponding to electronic money are held in one or more segregated bank accounts with one of our banking partners separately from our own funds.

This means your funds are protected in the unlikely event that BVNK becomes insolvent. 

Please note, that the Depositor and Investor Compensation Schemes do not apply to the issuing of electronic money. For more information on safeguarding rules, see the MFSA's Regulations on Safeguarding.

 

‍BVNK partners in the UK and Europe

‍BVNK also partners with authorised and regulated Electronic Money Institutions in the UK and EU to issue e-money and provide related payment services. 

In accordance with regulatory requirements, funds received by the EMI in exchange for e-money are segregated from the partner’s own funds and are held within designated client money accounts with the partner’s clearing bank. 

This means those funds are protected from any risk associated with the partner’s solvency. 

Learn more about BVNK’s licences and permissions


*BVNK operates as an Electronic Money Institution in: (1) the UK via its legal entity, System Pay Services Limited (company number 11621763, authorised and regulated by the Financial Conduct Authority – Ref: 901057) and (2) Malta via its legal entity, System Pay Services (Malta) Limited (company registration number C66961, authorised and regulated by the Malta Financial Services Authority - Ref: 984500640Z8ADE893D04).

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