Zerohash Secures EU License Under MiCA Framework
Zerohash Europe has recently achieved a significant milestone by securing authorization under the European Union’s groundbreaking Markets in Crypto-Assets Regulation (MiCA) framework. This approval, granted by the Dutch Authority for the Financial Markets (AFM), positions Zerohash as one of the first fully compliant service providers to operate under Europe’s unified regulatory landscape for digital assets.
Expanding Regulated Crypto Services
The license allows Zerohash to offer regulated crypto-asset and stablecoin infrastructure services throughout the European Economic Area (EEA). This enables the company to provide embedded crypto and stablecoin services to institutional clients, paving the way for seamless integration of these financial solutions into various platforms. With a Business-to-Business-to-Consumer (B2B2C) model, Zerohash aims to bridge the gap between traditional finance and the burgeoning world of digital assets.
A Trusted Partner for Major Institutions
Founded in 2017 and based in Chicago, Zerohash has already built a reputation by serving high-profile partners, including Interactive Brokers, Morgan Stanley, Franklin Templeton, Securitize, Stripe, Worldpay, and Public.com. This recent licensing achievement will bolster their efforts to help banks, fintech firms, and payment companies easily incorporate stablecoin transactions and digital asset services directly into their existing offerings.
The Rigor of AFM’s Approval Process
The AFM’s authorization process is known for its stringent requirements. Crypto-asset service providers must submit meticulous business plans, pass governance assessments, and adhere to anti-money-laundering laws as stipulated by the Dutch Money Laundering and Anti-Terrorist Financing Act. Additionally, firms are evaluated on their operational resilience and must maintain robust surveillance systems to prevent market abuse. Capital reserves also need to be in place, generally ranging from €50,000 to €150,000 based on the services provided.
A Global Licensing Footprint
Zerohash’s European license adds to its already impressive global licensing footprint, which includes regions such as the United States, Bermuda, Canada, Australia, and parts of Latin America. Earlier this year, the company also completed a striking $104 million Series D-2 funding round with backing from major players like Interactive Brokers and Morgan Stanley.
Prospective Acquisition by Mastercard
In a notable development, Mastercard has reportedly entered late-stage discussions to acquire Zerohash for a figure between $1.5 billion and $2 billion. This potential acquisition signifies a robust investment from Mastercard into the realm of stablecoins and on-chain settlement, highlighting the growing significance of this sector within the financial landscape.
Growing MiCA Licensing Landscape
As Zerohash joins a growing list of licensed entities under the MiCA regulations, it follows a wave of approvals across the 30-country bloc. As of July, more than 53 companies, including notable names like Coinbase, Kraken, Crypto.com, Robinhood, Societe Generale, and Circle, have received similar licenses. This burgeoning network of compliant firms illustrates the rapid shift towards regulatory clarity and standardization in the crypto market.
Harmonizing Rules Across the EU
The MiCA framework, which became applicable to stablecoin issuers in mid-2024 and anticipates extending to all crypto service providers by the end of 2024, aims to harmonize regulations, protect consumers, and enhance financial stability across Europe. This move is particularly relevant in the current global financial climate, as regulators strive to catch up with the fast-evolving landscape of digital currencies.
Licensing Leaders in Europe
Germany, the Netherlands, and Malta are at the forefront of licensing activity in this new regulatory environment. Companies like Coinbase obtained their approvals in Luxembourg, while others like BitGo and Bybit have successfully licensed in Germany and Austria, respectively. This streamlined authorization process allows firms to operate across all EU member states without the need for separate applications in each jurisdiction.
Ongoing Discussions on Digital Payments
MiCA’s introduction has also sparked renewed discussions about Europe’s broader digital payments agenda. The European Central Bank (ECB) has been vocal about the need for strict limitations on multi-issuance stablecoins, particularly those tokens that straddle jurisdictional lines. Concerns have been raised regarding the potential strain on local financial reserves during redemption events, leading to calls for tighter regulations on non-EU stablecoin issuers to ensure financial sovereignty.
The Future of Digital Euro
Simultaneously, momentum is building for a digital euro. The ECB aims for the project to potentially launch by 2029, following cooperation among euro-area finance ministers on holding limits and design principles. Lawmakers are diligently finalizing the necessary legal framework, with a parliamentary position expected by May 2026.
Such developments highlight the continually evolving landscape within the EU, as regulators and financial institutions navigate the challenges and opportunities presented by digital currencies, paving the way for a more integrated financial ecosystem.
