ETERBASE is seeking to become the first fully compliant cryptocurrency exchange. One of the ways they are doing this is through the acquisition of an Electronic Money Institution (EMI) license, as well as putting a focus on regulatory compliance. The whitepaper outlines in detail its procedures regarding KYC, GDPR, and AML requirements.
ETERBASE and the EMI License.
The acquisition of an EMI license will mean that ETERBASE can clear EUR payments directly, without needing to avail of the services of a third party. With the acquisition, ETERBASE can deal in e-money, which is electronic money backed by fiat.
EMI license acquisition means that ETERBASE can operate in the Single Euro Payments Area (SEPA) without banks. And just like a bank, they will be granted the ability to issue international bank account numbers (IBANs) to customers. The EMI license covers thirty European countries. SEPA currently serves over 500 million people and 20 million businesses.
What this means is that the ETERBASE cryptocurrency exchange would be held to the same regulatory standards, and provide the same services, as a bank. Customers would have access to a more integrated range of services on a single platform, and it would be easier to make transactions without worrying about legal, financial, and taxation issues. This is a recurring issue with present exchanges which are not regulated.
Coinbase in the USA recently acquired RIA and broker-dealer licenses from the SEC. It has also established a crypto index fund, expanded to Japan, and improved its Coinbase Commerce product to reach millions of online vendors. The VCTRADE exchange recently launched in Japan, backed by SBI Holdings, and Fidelity Investments are said to be interested in opening their own cryptocurrency exchange.
However, ETERBASE was designed specifically to be regulatory compliant, and it is ahead of its competitors, with the possible exception of Coinbase in the USA. The platform is aiming to be a fully regulated ecosystem that will be secure, efficient, and compliant. It has no real competitors in the EU region and will be the first cryptocurrency exchange to acquire an EMI license, putting it further ahead.
The European parliament recently voted to increase regulations on cryptocurrency exchanges, and exchanges which do not conform to standards will be unable to operate, as the DLT ecosystem evolves. Institutional investors will not invest in unregulated exchanges, but only in those that are fully secure and thoroughly regulated.