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The Post Office’s technology is being utilised to offer vouchers that may be redeemed on the decentralised exchange Swarm Markets.
Beginning next week, the United Kingdom’s state-owned postal service will assist anyone in purchasing cryptocurrencies through its identity verification app.
The move follows the Post Office’s agreement with decentralised exchange (DEX) Swarm Markets.
The deal enables verified users of the Post Office’s app, EasyID, to click through to Swarm’s website, where they can purchase vouchers that can be redeemed for cryptocurrencies.
The Post Office is only responsible for the ID app; it does not receive a commission from the vouchers sold or endorse sales of crypto. According to The Telegraph. Swarm pays digital verification company Yoti, the company powering the identity verification technology in Post Office EasyID.
Some UK politicians disapprove of the move. Labour MP Angela Eagle told The Telegraph that “The Post Office is running a huge risk of completely damaging a trusted brand [for] something which is unregulated, and giving it legitimacy and credibility. I think they should stop it right away.”
The Conservative Party’s Nicky Morgan added: “It does seem a very odd thing for the Post Office to get involved with.”
British authorities counsel caution
The UK’s top finance watchdog, the Financial Conduct Authority (FCA) warned cryptocurrency investors back in January that “they should be prepared to lose all their money.”
The FCA cited the extreme price volatility of cryptocurrencies as a cause for concern and gave UK crypto companies until next March to register with the authority.
Binance Markets Limited, a UK-based version of Binance Global, was barred from functioning in the UK after withdrawing its application to register with the FCA. Binance.com has prohibited UK consumers from withdrawing cash since the prohibition.
While crypto trading in the UK is unaffected by the new restrictions, the Post Office’s plan to facilitate crypto trading may serve users who have been left out by Binance.