BABB Set to Pull the Trigger in Lithuania

With BABB set to pull the trigger in Lithuania and apply for a banking license in the Baltic nation, the ambitious fintech startup appears on track to become, in its own words, a “decentralized platform leveraging blockchain and biometrics technology…” providing “… peer-to-peer banking services to the global microeconomy”.

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BABB Set to Pull the Trigger in Lithuania

BABB thinks they are all but ready to apply for a banking license in Lithuania. CIO Paul Johnson claims to have had lengthy and productive discussions with the Bank of Lithuania, and suggests after a few tweaks, the startup will be ready to formally apply for a license. Per Johnson:

“… There are no major issues left to address. I’m hoping that we come away from that meeting with no major questions. There will be a couple of minor issues to tidy up, no doubt about that, but we’ve got everything else ready to go. So, at that point, it would be a case of pulling the trigger… That would mean we can go into the process for the formal application.”

Next Stop… Britain, Britain, Britain

The U.K. is a more difficult jurisdiction in which to obtain banking status, with Johnson calling a U.K. license “the most prestigious in the world, and the hardest to get.” Having met with regulators at the Prudential Regulation Authority (PRA), the Bank of England’s regulatory arm, BABB anticipates a lengthier process toward meeting all the requirements before proceeding with a formal application. As their late August blog post states:

“We can apply now if we want to, they wouldn’t stop us, but the problem is you would fail pretty quickly if you didn’t have everything absolutely right.”

BABB set to pull the trigger in Lithuania

Crowdfunded Equity Sale Followed the ICO

Following BABB’s ICO, they received legal advice that equity raising would be a preferred way to generate the minimum capital requirements to meet banking industry regulations. Their crowd sale raised £1.5 GBP.

BABB had been in discussions with regulators in Bahrain, presumably in pursuit of a banking license there, but no updates on any progress of that have been offered. Given BABB’s decentralized nature, the startup has developed a unique approach to meeting KYC regulations, with social onboarding and the collection of facial and voice biometrics all part of the mix.

Sound off below. With BABB set to pull the trigger in Lithuania, is the company on track to secure the licenses it needs to become the bank for the global microeconomy?

Images via Pixabay

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