Brand visibility does not mean the role is limited to marketing
When assessing this, one can work backwards from the user experience: who opens the user's account, who displays the available balance, who decides to freeze or close the account, who sets the exchange quote, and whom the user believes should repay the money if a problem arises. If the brand actually controls these key steps, merely stating at the end of a contract that "we do not issue cards" is usually insufficient to explain the full service. Conversely, a genuine introduction that involves only clear disclosure should not automatically be treated as a card issuer.
Agent and distributor do not mean the same thing
The UK FCA's guidance on payment services and e-money distinguishes payment agents from e-money distributors: providing payment services through an agent involves a registration arrangement, a distributor cannot provide payment services on that basis, and e-money issuance itself cannot be carried out by an agent or distributor in place of the issuing institution. This is a specific classification under the UK regime, and "agent" should not be used as a universal label implying no market access requirements anywhere in the world.
Therefore, after signing a channel cooperation agreement with an upstream party, it is also necessary to confirm whether the agreed role exists in the relevant jurisdiction, what it can do, whether registration is required, and whether the counterparty has completed the corresponding formalities. Calling a role an agent in a commercial contract does not mean regulatory registration has been completed; and receiving only referral commissions does not necessarily exclude regulatory issues relating to the actual functions performed.
Two types of brand cooperation should be presented with two types of responsibility
Assume Brand A merely introduces a card to eligible customers, the customers contract directly with the card issuer and the crypto institution, and Brand A does not handle balances; Brand B, by contrast, accepts top-ups, displays its own account balances, and undertakes to convert stablecoins for spending. Even if both cards bear the brand name, the business that Brand B needs to analyze is clearly greater, and Brand A's introduction model cannot simply be applied to it.
Customer acquisition itself must also be lawful. For EU promotions bundled with crypto services, Article 61 of MiCA makes clear that active solicitation cannot be turned into fully unsolicited customer action by means of a disclaimer. In other markets, including mainland China, local restrictions should be checked separately, and an overseas agent status cannot replace local marketing review.
The most easily overlooked aspect of brand cooperation is exit
It is advisable for the contract to specify clearly who holds the customer relationship, who safekeeps funds and records, who handles complaints, and who will notify customers, refund or migrate balances after the cooperation ends. Customers should know the actual financial service provider before opening an account, rather than seeing the upstream name for the first time only after problems arise with their funds. Internally, the marketing team should also be restricted from making unverified promises on its own, such as principal protection, global availability, or unconditional instant withdrawal.
Recommended actions
- Choose the introduction, agency, distribution or independent service model according to the actual authority held.
- Verify the specific authorizations required for registration and the authorizations granted by partners in respect of the brand, market and product.
- Clearly disclose each service entity on the account-opening and balance pages and in the terms and conditions.
- Agree on exit, refund, complaint-handling and record-transfer arrangements, and verify marketing commitments.
This content is for general information only and does not constitute legal advice. Please consult a qualified lawyer about specific matters.
References
- Payment Services and Electronic Money – Our Approach, Chapter 5 — UK Financial Conduct Authority (FCA)
- Article 61 of MiCA: services initiated entirely at the client's own initiative — EU regulations / ESMA official rulebook
