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Nexo’s drive for compliance means the company has over 50 licenses.
Crypto lender Nexo has announced the receipt of an Italian operating license. Issued by the Organismo Agenti e Mediatori (OAM), the ‘virtual currency operator’ license allows Nexo to provide its services to Italian citizens legally.
The license continues Nexo’s drive for global compliance and regulation. Co-founder and Managing Partner of Nexo, Antoni Trenchev said, ”Over the years, Nexo has maintained excellent standing with regulators across the globe through our continuous license acquisition effort.”
A testament to this is Nexo’s position in the wake of the FTX collapse. Recall that following the collapse, there’s been pressure on exchanges to show their proof of reserves. While Binance did so, Nexo did better by showing its liabilities.
According to the audit, the Swiss-based company has $3.4 billion in customer liabilities, each of which is 100% collateralized by assets. Also, the firm advised businesses to avoid uncollateralized loans, especially during market downturns.
Italian Operating License Will Aid European Efforts
At last count, Nexo’s drive for compliance means the company has over 50 licenses. The Italian license may prove even more significant with the European Union’s Markets in Crypto Assets (MiCA) framework due to kick off by 2024. Based on the MiCA framework, Nexo will be able to passport its Italian license across the 27 EU member states.
Trenchev confirmed this, stating that securing the Italian license would improve the robustness of the firm’s compliance in Europe.
“We aim to lead by example with our top-tier regulatory and compliance infrastructure and by actively participating in the establishment of a functional, useful, and beneficial regulatory framework for crypto, “he concluded.
The Race for Compliance
Similarly, crypto exchange Gemini received its Italian operating license. The OAM listed Gemini in its register on November 4, a few days after Nexo. Consequently, both firms join a long list of crypto service providers like Coinbase, Binance, Coinify, Zonda, and Crypto.com with licenses from the OAM.
Considering the increased call for regulation in the crypto space in the aftermath of the FTX collapse, these licenses are integral. According to Trenchev, the license is needed to give its clients and partners the highest level of security and trust.
Compliance by companies like Nexo and Gemini may be what restores client confidence and trust in the security of the digital asset ecosystem.