How are my e-money funds protected at BVNK? A guide to safeguarding
We explain what safeguarding is and how BVNK and our partners meet legal requirements in the UK and Europe to keep your e-money funds safe.
What is safeguarding?
Safeguarding is a way of protecting your funds in the event that your payment provider becomes insolvent. There are different ways that providers can safeguard funds: a common method is ‘segregation’, where a provider holds your money in a protected safeguarding account, separately from their company funds.
Safeguarding is a key regulatory requirement for all electronic money institutions (EMIs) in Europe under the revised Payment Services Directive 2, and in the UK under the Electronic Money Regulations 2011 and Payment Services Regulations 2017.
How does BVNK safeguard customer funds?
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:
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 protect 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.
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.
*BVNK operates as an Electronic Money Institution in the UK via its legal entity, System Pay Services Limited (company number 11621763, authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution – Ref: 901057).