Ziglu Acquires Damex Retail Crypto Clients and Expands to Include Stock Trading Services

Sky News has covered that Ziglu, a London-based platform offering services for both cryptocurrency and traditional currency trading, has recently negotiated an agreement to take over the consumer-facing segment of Damex, a company that operates out of Gibraltar and Spain, and specializes in cryptocurrency payment processing.

Previously, in 2022, Ziglu had been on track to merge with Robinhood in a transaction estimated at $170 million. However, the marriage between these firms unraveled in the early parts of 2023 following the downturn in cryptocurrency valuations. It is anticipated that Ziglu will disclose the acquisition of Damex shortly.

A mere hint from industry insiders suggests that following the merger, the unified entity could boast nearly 200,000 patrons. There are also plans for Ziglu to branch out, aiming to bring trading opportunities in stocks from both the UK and the US to its European clientele in the forthcoming months.

Nevertheless, the expansion to include stock trading services – whether that entails dealing in actual shares or Contracts for Difference (CFDs) – would necessitate Ziglu to acquire additional regulatory approval. Currently, Ziglu holds authorization and regulation status in the UK by the Financial Conduct Authority (FCA), thereby enabling it to issue electronic money and execute associated payment services. Ziglu is further recognized as a cryptoasset business by the FCA for the purpose of anti-money laundering oversight.

Should Ziglu decide to extend its stock trading services within the UK, this would compel the company to obtain a “full” brokerage license from the FCA. And, to roll out similar offering to European customers involving shares or CFDs, a separate certification from one of the EU’s national regulatory authorities would be required.