Introduction
MoonPay, a notable figure in the fiat-to-crypto onramp arena, has achieved a new milestone in its European journey. The latest achievement is securing a license in Liechtenstein, a diminutive European nation nestled between Switzerland and Austria.
The Scope of the License
Having gained the nod from the Liechtenstein Financial Market Authority, MoonPay now proudly wears the title of a licensed trustworthy technologies and exchange service provider in the nation. This green light means that MoonPay can foster transactions between digital assets and traditional currencies, but solely within Liechtenstein’s boundaries. However, it’s essential to note that the jurisdiction of this license is limited to Liechtenstein, inhibiting MoonPay’s capacity to offer analogous services across the entirety of Europe.
Comparative Dynamics
MoonPay’s journey in Europe has witnessed similar patterns in the past. For instance, their Irish virtual asset service provider license, which they obtained in August from Ireland’s central bank, showcases similar territorial restrictions. MoonPay also bagged regulatory assent in the UK in December 2022 and furthered their Italian footprint in June the same year by becoming a VASP.
Gearing up for MiCA
Looking at the broader European perspective, MoonPay is gearing up for the Markets in Crypto Assets (MiCA) legislation, set to be fully operational in 2024, after being ratified in April 2023.
Max Crown, MoonPay’s co-founder and CFO, expressed the company’s enthusiasm about this European journey, emphasizing their unwavering commitment to European norms. He mentioned, “MoonPay’s commitment to European regulatory harmony is evident in our expanding registrations. We are keenly observing MiCA’s unfolding and pledge complete adherence once it’s active.”
Liechtenstein’s Regulatory Landscape
Come January 2020, Liechtenstein unfurled its regulatory blueprint for financial service entities operating at the blockchain intersection. This framework, emphasizing “client protection”, now encompasses MoonPay. Upon earning the license, MoonPay, like others, needs to continually align with certain prerequisites. Some of these include maintaining a stipulated capital base, upholding rigorous internal control protocols, and adhering to reporting mandates. Non-compliance or falling short of these stipulations can lead to a hefty penalty – a fine reaching up to 100,000 Swiss Francs, which is roughly equivalent to $112,000.
Final Thoughts
MoonPay’s recent stride in Liechtenstein accentuates its European aspirations and commitment to regulatory alignment. While the road ahead is dotted with challenges, especially given the diverse regulatory tapestry across Europe, MoonPay seems poised to navigate it effectively.
