30s Summary

Paxos is set to acquire Membrane Finance, a Finnish electronic money institution, extending its reach to the European Union. This move comes in response to new EU rules released about stablecoins in June. Once the purchase is complete, Paxos will become a fully licensed electronic money institution within the EU. The company plans to comply with all Markets in Crypto Asset (MiCA) regulations. The details of the acquisition are still under wraps, pending regulatory approval.

Full Article

Paxos, the company that issues stablecoin, has decided to buy Membrane Finance, an electronic money institution located in Finland. This move expands Paxos’ reach to the European Union, following the implementation of new rules on stablecoin about five months ago.

Crypto companies have been making strides to align with the Markets in Crypto Asset (MiCA) regulations. These rules apply to stablecoin issuers and were implemented in late June, with additional regulations rolling out by the end of the year. Examples of these progressive moves by crypto companies include Coinbase’s recent announcement that they’ll be delisting unauthorized stablecoin issuers from their platform, and the launch of crypto exchange Gemini in France.

Once the acquisition of Membrane Finance is sealed, Paxos will become a fully licensed electronic money institution in Finland and the broader EU. The company expressed its intention to make its collection of assets and token solutions compliant with MiCA regulations. The acquisition’s details, which is awaiting regulatory approval, have not been disclosed yet. The acquisition was edited by Sheldon Reback.