Aave obtains an electronic money institution license issued by the UK regulatory authority FCA, surging over 30% in the past 24 hours.

The UK entity of decentralized lending protocol Aave has obtained an Electronic Money Institution (EMI) license, allowing users to convert their fiat currency into stablecoins and other assets within the Aave ecosystem.

Aave Obtains E-Money Institution License

According to a public announcement by the Financial Conduct Authority (FCA) in the UK, decentralized lending protocol Aave's UK entity Aave Limited received approval from the FCA on July 7, 2020, allowing it to issue electronic money and provide related services such as electronic payments. According to founder and CEO Stani Kulechov, the authorization application was first submitted in 2018. Stani Kulechov stated in an interview:

"The purpose of submitting the application was to facilitate easier integration of payment accounts with the Aave ecosystem. In Europe, entities with an E-Money Institution (EMI) license have the same business authorization as Coinbase and Revolut. Over time, this will help more new users join the Aave ecosystem and decentralized protocols."

According to Stani Kulechov, the most important aspect of obtaining the EMI license is to allow Aave to legally launch a "fiat-to-crypto exchange channel," enabling users to convert fiat currency into stablecoins and other assets within the Aave ecosystem and then use these assets in the Aave protocol.

Aave’s UK entity responsible for integrations and support, Aave Limited, is now licensed as an authorised electronic money institution. After a lengthy application process, the authorisation was granted in July by the Financial Conduct Authority (FCA). https://t.co/iLNxvkyvSn https://t.co/FUSP44TZob pic.twitter.com/ZtEo7Z2fG3

— Aave (@AaveAave) August 24, 2020

According to an announcement by Aave on the 25th, as Aave Limited is based in the UK, the pilot of its specific services will start in the country and then expand further to the entire European Economic Area (EEA) and globally. Additionally, Stani Kulechov also noted that Aave's corporate entity will continue to seek other licenses to assist newcomers joining the Aave ecosystem until widespread adoption is achieved.

Aave officiallyannouncedthis news. In the past 24 hours, Aave's token LEND hassurgedby over 30%.