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FreeBnk brings IBAN to the blockchain with E Money Network
- FreeBnk and E Money Network partner for IBAN.
- This decision strengthens FreeBnk’s compliance with MiCA.
- MiCA implements enhanced consumer protection.
Regulatory risks have long been the most difficult to manage in the cryptocurrency sector, with companies facing hefty fines and penalties for failing to comply. Fortunately, the European Union has recently provided the necessary clarity with its comprehensive regulatory framework.
To ensure that its services comply with EU standards Regulation of Crypto-Asset Markets (MiCA)FreeBnk recently entered into a partnership with E Money Network. This cooperation will allow FreeBnk users to access unique International Bank Account Numbers (IBANs), bringing this important standard to the blockchain industry.
Blockchain Meets Banking with FreeBnk’s IBAN
The blockchain industry has just taken another step towards its integration into traditional finance. Free Bankinga hybrid banking and DeFi platform in partnership with E Money Network, the first MiCA compliant blockchain. The partnership will enable FreeBnk to be compliant with the Mica rules, which will be take effect June 30 of this year.
Through this partnership, FreeBnk users will obtain unique IBANs. This will facilitate seamless transactions across the world, both in and out of decentralized finance, enabling the transfer of funds between cryptocurrency holdings and traditional bank accounts.
The integration ensures that FreeBnk can easily interface with traditional banks, further fulfilling its goal of acting as a hybrid between DeFi and traditional banking, which widely adopts the IBAN model.
“This collaboration highlights our desire and commitment to bridging traditional banking with blockchain, allowing our users to easily navigate between fiat and digital assets,” explained Yunus Emre Ozkaya, CEO of FreeBnk.
What MiCA means for FreeBnk
Since its entry into force last year, the European MiCA regulation has set high standards for compliance. The main objective of the regulation is to offer consumers and retail investors protection similar to that of traditional financial markets. On the one hand, it requires crypto-asset service providers to provide clear and comprehensive information on all the assets they provide, including the risks.
The MiCA Act also provides for transparency rules and measures to protect client assets and prevent conflicts of interest. This translates into the obligation for firms to separate client assets from their own and to submit to regular audits, which must be reported to regulators.
Such practices were obviously absent when the now-bankrupt FTX cryptocurrency exchange incident occurred. The exchange’s collapse rocked the industry, drawing the attention of traditional regulators and sparking the push for regulation.
By complying with MiCA, FreeBnk demonstrates a high level of consumer protection, which is crucial in the banking and crypto space.
On the other side
- The crypto community’s reaction to MiCA has been mixed, with many fearing that strict rules would stifle innovation. However, others have welcomed the regulatory clarity.
- The MiCA rules are particularly important for tokenized real assets (RWA), which is one of FreeBnk’s areas of focus. According to industry estimates, RWA will become a $10 trillion industry by 2030.
Why it matters
By partnering with E Money Network, FreeBnk ensures both regulatory compliance and a high degree of consumer protection. This is crucial for users in both the crypto and banking space.
Learn more about MiCA regulations:
Are cryptocurrencies doomed in the EU? New MiCA rules explained
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