ETERBASE AG is pleased to announce that the Financial Market Authority (FMA) in Liechtenstein has followed the legal opinion as submitted to the regulator and does not intend to regulate the crypto-to-crypto business of ETERBASE at this time.
The FMA has created legal certainty regarding the fiat or currency exchange business model and has declined its applicability. This is because ETERBASE will not exchange crypto-to-fiat pairs on its own account, and instead will be merely matching exchange orders. For this purpose, ETERBASE is also teaming up with regulated financial institutions and crypto-custodians to provide fiat gateways, cold storage and hot wallet services. In this way, ETERBASE will allow customers to choose from variety of financial institutions and custodians to serve their needs and security requirements.
Additionally, the issuance of the ETERBASE (XBASE) token in an Initial Coin Offering (ICO) is not deemed an activity which may be subsumed under a currency exchange pursuant to the FMA. ETERBASE is however going to apply rigorous KYC/AML/CTF due diligence for all eligible ICO participants that are well beyond the standards so far applied within the industry to fully comply with the present and future legislation such as the 5th EU Anti-Money Laundering Directive.
The regulatory assessment provided by the FMA to ETERBASE is based purely on current Lichtenstein law and the legal facts that can be judged differently abroad and based on the legal opinion drafted by NÄGELE Attorneys at Law LLC in Liechtenstein.
ETERBASE has plans to seek further regulatory approval for the Electronic Money License (EMI) to provide individual International Bank Account Numbers (IBAN) and debit cards in order to serve over 500 million customers across the European Economic Area (EEA).