- FreeBnk and E Money Network partner for IBAN.
- The move furthers FreeBnkโs compliance with MiCA.
- MiCA rolls out stronger consumer protection.
Regulatory risks have long been the most difficult to manage in crypto, with companies facing steep fines and sanctions if they donโt comply. Luckily, the European Union has recently provided much-needed clarity with its comprehensive regulatory framework.
To ensure its services comply with the EUโs Markets in Crypto-Assets Regulation (MiCA), FreeBnk recently partnered with E Money Network. The cooperation will enable FreeBnkโs users to access unique International Bank Account Numbers (IBAN), bringing this important standard to the blockchain industry.ย
Blockchain Meets Banking With FreeBnk’s IBAN
The blockchain industry just got one step closer to integrating with traditional finance. FreeBnk, a hybrid banking and DeFi platform partnered with E Money Network, the first MiCA-compliant blockchain. The partnership will put FreeBnk in compliance with the MiCA rules, which will take effect on June 30 this year.
Sponsored
Through the partnership, FreeBnk users will get unique IBANs. This will facilitate seamless transactions across the globe, both in and out of decentralized finance, allowing for the transfer of funds between crypto holdings and traditional bank accounts.
The integration ensures that FreeBnk can easily interface with traditional banks, further serving its goal of acting as a hybrid between DeFi and traditional banking, which widely adopts the IBAN model.
โThis collaboration highlights our desire and commitment to bridging traditional banking with blockchain, allowing our users to easily navigate between fiat and digital assets,โ explained Yunus Emre Ozkaya, CEO of FreeBnk.
What MiCA Means for FreeBnk
Since taking effect last year, the EUโs MiCA has set a high standard for compliance. The main focus of the regulation is on providing consumer and retail investor protection, similar to that in traditional financial markets. For one, it mandates that crypto-asset service providers give clear and comprehensive information on all the assets they provide, including the risks.
MiCA additionally provides transparency rules and measures to protect client assets and prevent conflicts of interest. This is covered by requirements for firms to segregate client assets from their own and undergo regular audits, which must be reported to regulators.
Such practices were notably absent when the now-bankrupt crypto exchange FTX incident occurred. The exchangeโs collapse shook the industry, drawing the attention of traditional regulators and triggering the push for regulation.
By complying with MiCA, FreeBnk demonstrates a high standard of consumer protection, which is crucial in both the banking and crypto space.
On the Flipside
- The crypto communityโs reaction to MiCA was mixed, with many concerned that stringent rules will stifle innovation. However, others welcomed regulatory clarity.
- MiCA rules are particularly important for tokenized real-world assets (RWAs), which are one of FreeBnkโs focus areas. According to industry estimates, RWAs will become a $10 trillion industry by 2030.
Why This Matters
By partnering with E Money Network, FreeBnk ensures both regulatory compliance and a high degree of consumer protection. This is crucial for users both in crypto and in banking.
Read more about MiCA regulations:
Is Crypto Doomed in the EU? New MiCA Rules Explained
Read more about what the election means for crypto:
VanEckโs Solana EFT Bets on Trumpโs Win: Bloomberg Analyst
