Can you explain in a bit more detail how it works?

The Zumo app has two separate money components: your cryptocurrency wallets (Bitcoin, Ethereum) and your local currency wallet (Pound Sterling, GBP) - both of which are accessed via your Zumo app.

In regard to your cryptocurrency holdings, Zumo is registered with the Financial Conduct Authority (FCA) as a cryptoasset firm. This registration confirms that Zumo has successfully passed through the FCA’s assessment process as applied to cryptoasset firms, and that it is supervised and subject to enforcement by the FCA for its compliance with the UK's Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, known as the MLRs. Registering with the FCA and demonstrating compliance with the MLRs is a requirement for cryptoasset service providers to carry on business in the UK. It's important to know that FCA regulation covers MLRs compliance only: cryptocurrencies themselves are not currently regulated in the UK. The Financial Ombudsman Service will not be able to get involved if you have a complaint, and your money will not be protected by the Financial Services Compensation Scheme.

In regard to your pound sterling (GBP) funds, Zumo partners with Modulr, which is an Electronic Money Institution (EMI) authorised by the FCA. Through this relationship as an agent of Modulr, we are able to provide you with a digital wallet to store and transact in pound sterling.  It's important to note that neither Zumo nor Modulr is a bank and your money will not be protected by the Financial Services Compensation Scheme. As Modulr is an EMI, it does however have a strict obligation to safeguard your money, which it will do by holding it in a separate account intended for this purpose.