Wise said it has been denied a US banking licence in a setback to the payments firm months after moving its main stock market listing across the pond.
The London-based business had applied for a national bank charter in the hope of being able to operate under the regulation of the Office of the Comptroller of the Currency (OCC).
It already operates in the US but the licence would give it direct access to payment systems through the Federal Reserve and offer some financial services to customers.
But Wise said the application was denied due to historical issues with its original application including relating to financial crime.
“We have invested significantly in enhancing our processes and controls globally and in the US since the original application for the trust charter was prepared, including those to prevent financial crime alongside other forms of risk,” the company said.
“Preventing bad actors from using financial institutions like Wise is of the utmost importance to us.”
Wise also said US payments regulation had changed since submitting the application a year ago, partly because of new laws under US president Donald Trump which regulate cryptocurrencies.
The company plans to submit a new application under the new regulatory framework, and it said the OCC’s decision does no affect its normal operations in the US under the existing money transfer licences.
But the rejection marks a setback for Wise which switched its primary listing from London to New York in May to take advantage of a larger stock market and bring on board new investors.
Wise, which was launched in 2011 under its original name TransferWise, plans to keep a secondary listing in London and said last year that it will continue hiring and investing in the UK.
Some 12 million people and businesses used Wise services in the latest quarter to transfer money.
Wise shares were down by more than 6% following the update on Friday.
