Crypto has triggered many nations to force compliances on banks, consumers and even the asset management companies. More compliance are being forced and a lot of fly-by-night companies are being closed in the crypto industry.
Many exchanges pop up every now and then. And the exchanges try to act like the stock market but they could not keep up with the changing market and the stocks. So they need a lot of licenses in the Europe to operate and earn benefits.
Binance,Houbi and many others are forced to take the bank license in variety of the places. And that includes the Europe and the asian bank markets too. So we are being left with the banks choice to get into such license so that they can handle the people in crypto.
There is this bank named Xapo that has recently got the license recently.
Image Credit: Xapo
Who is XAPO
Xapo is one of the bank that has started in the earlier times of the bitcoin. And they slowly gained the userbase. And despite the slow andhigh days of the crypto they managed to survive upto this point.And they had also demand during the odd times from the consumers.
Later they got the banking license which was required for dealing with the compliance. Which is kind of a case with most of the banks and the crypto neo banks which deal with the variety of the assets. That's what most of the people are exposed to, so they hold the banking license now.
Markets in Crypto Assets (MiCA) Regulation
So who offered the XAPO the licnese to trade? MICA is a compliance organization that deals with stocks, funds, crypto and many other asset types. And they seem to be taking hold of the things which make them regulate the financial organizations who happen to deal with the asset companies.
Earlier XAPO was trading into the bitcoin only and now they can do the Ethereum trading and also other supported altcoin trading too. And which also means that any stock or the fund that deals with the crypto asset that would be possible to trade through the XAPO.
Europe and Regulation
To be honest it is good to have some regulation because otherwise there would be tons of people spending the money and losing it to some rug pull. Though this would end up in reduction of the DeFi but we have to tolerate that much. We have to understand that there are sharks in the water and they are always hungry.
Giving banks the regulation and compliance orders and then getting them license that they seek is a good direction. So if we choose to accept the KYC and compliance to get the funds in fiat. It's not easy to dream the decentralization and get it functional.
Does that mean regulation is both good and bad? Yes, the thing is bad things happen and good things suffer. Like most of the things in the life that is the case here as well. If people behave then there is less compliance but as people tend to take advantage of others they end up with more issues in the crypto industry.
Xapo getting the license to trade stocks and the crypto is going to bring some level of more options that we as a consumer seek. And this is a good news for the residents of the EU.