Notice to the customers of Easysend Ltd. regarding the withdrawal of the United Kingdom from the EU (brexit)
On 31 January 2020, under the Withdrawal Agreement, the UK left the EU. A transition period began that day, which lasts until 31 December 2020. During this time, the EU law continues to apply in the British territory, with Britain still treated as a member state.
No changes which concern EasySend Ltd.’s customers will be introduced before or on 31 December 2020. EasySend Ltd. continues providing payment services under the same rules until the end of the transition period. EasySend Ltd. remains an FCA-licensed entity which has the right to provide payment services in the EEA as part of the so-called single-passport rule – without the need to obtain additional permits for a particular country to conduct the activity in a given field.
For the time being, we do not yet know what the EU–UK relations will look like after the transition period. Britain did not apply for the extension of this period within the term specified in the Agreement. Therefore, as of 1 January 2021, the UK will be classified as a ‘third country’, and not a European Union Member State. During the transition, the EU and the UK are negotiating an agreement that would govern their relations after 31 December 2020. In case of no agreement (‘hard Brexit’), entities with their seat in the UK may lose the right to provide services to EU customers.
With this fact in mind, EasySend Ltd. has undertaken measures aiming at continuation of its business activity by registering a company in the EU (Poland) – EasySend Polska Sp. z o.o. – and obtaining the Polish Financial Supervisory Authority (KNF) permission to provide payment services as a National Payment Institution. The company will have the right to provide payment services in Poland, and all other EEA countries, on the basis of the single-passport rule. Thus, EasySend Ltd. is prepared to continue the provision of services to all its customers, irrespective of their country, due to the establishment of EasySend Polska Sp. z o.o.
For customers living in the UK, regardless of any future arrangements with the European Union, the manner in which EasySend Ltd. provides its services should not change.
EasySend Ltd. has identified the following potential elements of risk related to Brexit:
- possibly stricter requirements concerning the documentation of transactions to/from a ‘third’ country – which the UK will become on withdrawal from the EEA after 31 December 2020;
- possible changes in currency exchange rates and in conditions of using payment instruments, which may impact customers’ current obligations resulting from contractual terms;
- possible obligation on the part of the customers to take certain actions in order for the service to be upheld.
EasySend Ltd. constantly monitors the relevant regulations regarding provision of payment services in the EU, as well as the developments concerning Brexit and its consequences. Any changes will be communicated to EasySend Ltd.’s customers. Should you have any Brexit-related queries, please email us at email@example.com