DeFi project Aave Labs is set to expand its services in the European Union (EU) region. Its Ireland-based subsidiary ‘Push’ has secured the MiCA licence, clearing its way to roll out its euro-to-crypto service in the region. Announcing the development, Aave Labs said this makes it one of the first DeFi platforms to have received the MiCA approval.
Aave’s EU plans
The licence, issued by the Central Bank of Ireland, has established Aave as an official crypto asset service provider (CASO). It has authorized Aave Labs to offer its Push service across the EU to let residents move between euros and digital assets with ease at zero cost.
“Push by Aave Labs can provide regulated, secure on and off-ramping stablecoins with no fees,” the announcement said.
Since the EU allows “passporting” of the MiCA licence, it lets crypto firms registered in any of the EU nations to operate in other jurisdictions as well.
“Aave Labs chose Ireland to anchor its European Economic Area (EEA) operations. Ireland’s regulatory leadership reinforces its position as a key hub for transparent and trusted digital finance across the EEA,” the platform noted.
In its announcement, Aave Labs shared its observation that stablecoins and tokenized digital garnering mainstream traction, prompted it to begin the process of releasing its fiat-to-crypto service outside of the U.K. With MiCA, its service can now be made available across 27 key markets including Austia, Belgium, Croatia, and Denmark among others that collectively make for the EU.
The platform has reiterated that its lending protocol called the Aave Protocol continues to remain decentralized and not under the MiCA obligations.
The MiCA factor
MiCA or the Markets in Crypto-Assets (MiCA) regulation is a comprehensive set of rules designed to oversee the crypto regulations across the EU. The rules were implemented into full effect on December 30, 2024.
The legislation establishes uniform mandates for crypto firms looking to set up shops in any of the 27 EU jurisdictions. It lays down clear rules around transparency, consumer protection, and disclosure for digital asset firms to adhere to.
Owing to the clarity it brings to the table, MiCA, ever since its implementation has attracted multiple Web3 firms to flock to the EU.
In recent times, Blockchain.com, Revolut, and Gemini among others have secured MiCA licences to expand in the EU.