Aave protocol obtains the Electronic Money Institution license in the UK

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  • Aave protocol’s UK business entity has obtained an Electronic Money Institution license. 
  • The license allows an entity to issue digital cash alternatives and provide payment services. 
  • Aave is the first DeFi project to secure a monetary license in the UK.

The UK Financial Conduct Authority (FCA) has recently issued an Electronic Money Institution (EMI) license to lending protocol Aave’s UK business entity. This authorization allows the recipient to offer services like issuing electronic money (e-money) and providing payment services. This marks a significant milestone as Aave (LEND) is the first DeFi project to secure a monetary license in the UK.

According to The Block report, the CEO of Aave, Stani Kulechov, said that the application for the authorization was submitted in 2018.

The objective was to help Aave Ecosystem to access payment accounts and on-board users into DeFi. Electronic Money Institution is the same authorization that Coinbase and Revolut has in Europe. It will mostly support on-boarding new users into the Aave Ecosystem and to the decentralized protocol over time.

With its upcoming “Aavenomics” upgrade, Aave is all set to leap towards decentralization. Thanks to the new license, the firm plans to expand globally by officially piloting their product in the UK. Kulechov believes that the services will let users “go from fiat to stablecoins and other assets natively in the Aave Ecosystem.”

LEND/USDT

LEND/USDT daily chart

Following this news, LEND/USDT jumped and reached all-time high levels. Inevitably this led to the bearish corrections as the asset was overpriced. LEND/USDT has dropped a bit from 0.77483 to 0.76197. The price has dropped back into the 20-day Bollinger Band, which indicates that it’s no longer overvalued.

The daily chart has strong resistance at 0.77483, while there are two healthy support levels at 0.64851 and 0.59094.

 

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