Consumer Duty
The Hybrid BABB Platform
The BABB app provides a Hybrid Platform where you can store your cryptocurrencies, stablecoins, and fiat money with a Debit Card designed for retail customers. BABB acts as a bridge between the Web3 world of finance and the traditional banking system. The BABB app allows you to transfer your crypto to your external wallets and send/receive fiat money to your bank accounts or spend it using the BABB Debit Card.
The Hybrid BABB Product is inclusive and allows customers from 70+ countries to get the BABB platform. However, some of our services are not yet available in some of these countries.
The Hybrid BABB Platform is primarily designed to cater to the finance needs of retail customers on an individual basis, rather than catering to larger institutions or specialised entities. It is not yet appropriate for businesses, organisations, individuals seeking borrowing or lending services, NGOs, charities, financial institutions, or holding companies.
The Hybrid BABB Platform is composed of three accounts: Money (fiat), CurrencyX (stablecoins), and Crypto (cryptocurrencies)Pl
Money Account
The money account is a ‘virtual’ account in which you keep your money. It can store money in multiple currencies at the same time when multiple currencies are available.
The Money Account is an E-money account provided by ClearBank® Ltd (ClearBank) (account sort code is 04-13-54). ClearBank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Financial Services Register number 754568.
The money account is designed for retail customers in general and unbanked & under-banked in particular. Customers who may have some obstacles to accessing basic banking services can get an e-money account for day-to-day banking and digital payments.
Customers in 70+ countries can get a GBP Money Account.
The Money account is not yet a bank account and is only available in GBP Sterling. The BABB Card is currently available for UK customers only.
It’s important to note that the money accounts are e-money accounts rather than bank accounts. E-money is an electronic alternative to cash. If you give us money in one currency, we will issue an e-money equivalent in that currency. We will keep the e-money in your account, and other people will accept it as payment. In these terms, ‘money’ refers to e-money.
Safeguarding protects you if we were to become insolvent. If this occurs, you (along with all of our other customers) will be paid out of your e-money balances from our client money bank accounts. This process would be handled by an insolvency practitioner, not by us.
However, safeguarding regulations ensure that once any costs associated with insolvency are paid out, you will be paid first from our client money accounts. While Babb Remit Limited is a registered SEMI, it is not a bank, so your money is safeguarded in a segregated account with ClearBank. The FSCS is currently limited to £85,000 for each eligible retail customer.
BABB Remit Ltd, registered with the FCA as a SEMI, offers money accounts that are directly distributed to retail customers through the BABB platform. The platform is accessible on both iOS and Android, making it a suitable distribution strategy for this product.
Price and value outcome review
The Money Account provided by BABB Group Ltd does not entail any non-financial costs for retail customers. This means that customers utilising the Money Account will not encounter any additional expenses, charges, or burdens beyond the financial aspects associated with fiat money transactions. The regular financial fees associated include fees for international transfers, exchange rates, and the fees associated when ordering a BABB Debit Card.
BABB customers can rest assured that no additional costs are anticipated when they choose to exit or transfer away from the Money Account provided by BABB Group Ltd. This means that customers can freely and seamlessly transition out of the account without incurring any financial charges or fees from BABB Group Ltd.
BABB Group Ltd is satisfied that the design of the Money Account meets the requirements of the FCA Consumer Duty Products and Services outcome. The Money Account has been developed to cater to the needs, characteristics, and objectives of retail customers, the intended target market. BABB Group Ltd is confident that the distribution strategy, which involves providing the Money Account through the BABB platform, remains appropriate for the target market.
Furthermore, BABB Group Ltd believes that the price and value associated with the Money Account are fair and beneficial to retail customers. The product has been designed to be free of charge for retail customers, and any potential onward charges are at the discretion of BABB Group Ltd’s customers. There are no known or expected costs for exiting or transferring from the Money Account, and no significant anticipated non-financial costs for retail customers in the target market.
CurrencyX Account
The CurrencyX account is a multi currency account where you can have USDx, GBPx, RIALx stablecoins. The CurrencyX account of the BABB Platform allows you to store, convert, exchange, and transfer stablecoins to BABB users and/or external wallets. The Stablecoins on the BABB App are on the Ethereum blockchain (ERC20).
The CurrencyX account is designed for retail customers in the supported countries. Anyone in the 70+ countries where the App is available can open a CurrencyX account if they have a valid ID and passed the eKYC.
The CurrencyX Account provides a limited number of stablecoins, and they are GBPx, USDx, and Yemeni Rialx. Currently, consumers are not yet enabled to spend their stablecoins directly using their debit card, they must convert it to fiat money (GBP).
Customers using the CurrencyX account to store their stablecoins on the blockchain may be exposed to volatility risks associated with currency exchange rates. Stablecoins, although designed to maintain a stable value, can still be subject to fluctuations in the broader cryptocurrency market or changes in the underlying assets backing the stablecoin.
Regulated Decentralised Finance Ltd (formerly known as BABB Platform Ltd) offers CurrencyX accounts tailored to retail customers. These accounts enable users to securely store their stablecoins on the BABB Platform and facilitate transfers to external third-party wallets on either the ReDeFi or Ethereum network using blockchain technology.
Price and value outcome review
The CurrencyX Account provided by BABB Group Ltd does not entail any non-financial costs for retail customers. This means that customers utilising the CurrencyX Account will not encounter any additional expenses, charges, or burdens beyond the financial aspects associated with stablecoins transactions, such as fees for external transfers or potential price fluctuations.
BABB customers can rest assured that no additional costs are anticipated when they choose to exit or transfer away from the CurrencyX Account provided by BABB Group Ltd. This means that customers can freely and seamlessly transition out of the account without incurring any financial charges or fees from BABB Group Ltd.
BABB Group Ltd is satisfied that the design of the CurrencyX account, provided by Regulated Decentralised Finance Ltd, meets the requirements of the FCA Consumer Duty Products and Services outcome. Regulated Decentralised Finance Ltd is a registered crypto-asset firm with the United Kingdom Financial Conduct Authority (RRN 849446) under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) in respect of its activities in crypto assets.
The CurrencyX account has been developed to meet the needs, characteristics, and objectives of the retail customers it is intended for. BABB Group Ltd is confident that the intended distribution strategy, which involves offering the CurrencyX accounts directly to retail customers through the BABB Platform, remains appropriate for the target market.
Moreover, BABB Group Ltd believes that the price and associated value offered to retail customers for the CurrencyX account are fair relative to its benefits. The product has been designed to be free for retail customers to use. Any potential charges imposed on retail customers are at the discretion of BABB Group Ltd’s customers. There are no known or expected costs for exiting or transferring from the CurrencyX account, and no significant anticipated non-financial costs for retail customers in the target market.
Crypto Account
The Crypto Account is composed of crypto wallets on the Ethereum network (ERC-20) and the ReDeFi Network (RDF-20). The Crypto Account of the BABB App allows you to store, exchange, transfer internally/externally cryptocurrencies.
The Crypto Account is designed for retail customers in the supported countries. Anyone in the 70+ countries where the App is available can open a Crypto Account if they have a valid ID and passed the eKYC.
The BABB Crypto Account enables you to hold a limited number of tokens, which include ETH, BTC, BAX, and USDT. Internal transfers of crypto among BABB users are free. However, sending crypto to external wallets incurs a fee of up to 3.99% of the amount being sent.
The Crypto Account carries certain risks for retail customers, including those with characteristics of vulnerability. One significant risk is the volatility of cryptocurrencies, which can lead to potential price fluctuations and possible financial losses. Retail customers should be aware that the value of cryptocurrencies, such as ETH, BTC, BAX, and USDT, can fluctuate significantly in a short period. Additionally, the use of external wallets and exchanges introduces security risks, such as the potential for hacks, scams, or unauthorised access to funds. It is crucial for retail customers to exercise caution, employ strong security measures, and be aware of the potential risks associated with external transfers and transactions. Seeking proper guidance and understanding the complexities of cryptocurrencies is essential for all retail customers, particularly those who may be more susceptible to financial vulnerabilities.
Regulated Decentralised Finance Ltd (formerly known as BABB Platform Ltd) offers Crypto Accounts tailored to retail customers. These accounts enable users to securely store their cryptocurrencies on the BABB Platform and facilitate transfers to external third-party wallets on either the ReDeFi or Ethereum network using blockchain technology.
Price and value outcome review
The Crypto Account provided by BABB Group Ltd does not entail any non-financial costs for retail customers. This means that customers utilising the Crypto Account will not encounter any additional expenses, charges, or burdens beyond the financial aspects associated with cryptocurrency transactions, such as fees for external transfers or potential price fluctuations.
BABB customers can rest assured that no additional costs are anticipated when they choose to exit or transfer away from the Crypto Account provided by BABB Group Ltd. This means that customers can freely and seamlessly transition out of the account without incurring any financial charges or fees from BABB Group Ltd.
BABB Group Ltd is satisfied that the design of the Crypto Account, provided by Regulated Decentralised Finance Ltd, meets the requirements of the FCA Consumer Duty Products and Services outcome. Regulated Decentralised Finance Ltd is a registered crypto-asset firm with the United Kingdom Financial Conduct Authority (RRN 849446) under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (as amended) in respect of its activities in crypto assets.
The Crypto Account has been developed to meet the needs, characteristics, and objectives of the retail customers it is intended for. BABB Group Ltd is confident that the intended distribution strategy, which involves offering the Crypto Accounts directly to retail customers through the BABB Platform, remains appropriate for the target market.
Moreover, BABB Group Ltd believes that the price and associated value offered to retail customers for the Crypto Account are fair relative to its benefits. The product has been designed to be free for retail customers to use. Any potential charges imposed on retail customers are at the discretion of BABB Group Ltd’s customers. There are no known or expected costs for exiting or transferring from the Crypto Account, and no significant anticipated non-financial costs for retail customers in the target market.