Stablecoin issuer Paxos has made a move to expand its presence in the European Union by acquiring Membrane Finance, an electronic money institution based in Finland. This acquisition comes after the EU implemented strict regulations for stablecoin issuers in June.
The European Union’s Markets in Crypto Asset (MiCA) regulations have been a driving force behind many crypto companies ensuring compliance. These rules have been phased in throughout the year, with the regulations for stablecoin issuers taking effect in June, and the remaining rules set to be enforced by the end of the year.
Coinbase recently announced that it would be delisting unauthorized stablecoin issuers from its exchange, while Gemini has just launched operations in France. By acquiring Membrane Finance, Paxos will become a fully licensed Electronic Money Institution (EMI) in both Finland and the EU, allowing the company to offer its portfolio of assets and tokenization solutions in compliance with the MiCA regulations.
The terms of the acquisition have not been disclosed, as the deal is still subject to regulatory approval. This strategic move by Paxos highlights the company’s commitment to operating within the regulatory framework of the EU and ensuring that its services are compliant with the latest regulations in the region.
CoinDesk, an award-winning media outlet covering the cryptocurrency industry, reported on this acquisition. The publication’s journalists adhere to a strict set of editorial policies to ensure integrity, editorial independence, and freedom from bias in their reporting. CoinDesk is part of the Bullish group, which invests in digital asset businesses, and its employees, including journalists, may receive compensation in the form of equity from Bullish.
Camomile Shumba, a regulatory reporter for CoinDesk based in the UK, provided insights into this acquisition. With a background that includes internships at Business Insider and Bloomberg News, Shumba brings a wealth of experience to her reporting on regulatory developments in the cryptocurrency industry.
As the cryptocurrency market continues to evolve and regulations become more stringent, acquisitions like the one made by Paxos will likely become more common as companies seek to expand their operations while remaining compliant with the laws of various jurisdictions. By acquiring Membrane Finance, Paxos has taken a significant step towards solidifying its presence in the EU and ensuring that its services meet the regulatory standards set forth by the MiCA regulations.