Cake DeFi just made a big move into the European market that could quell investor fears of investing in DeFi.
Covered:
- Cake Granted License From Lithuania
- Regulatory Friendly DeFi: Have Your Cake And Eat It Too
Cake DeFi Granted License From Lithuania
Singapore-based Cake DeFi announced today that it has been granted a cryptocurrency license from the Registrar of Legal Entities of Lithuania. The license gives the DeFi platform the right to provide buying and selling of cryptocurrency, as well as administer custodial wallets for Lithuanian customers.
Cake DeFi has been operating as a Decentralized Finance platform since 2019. It offers buying and selling of crypto, as well as staking, lending, and borrowing.
“The license from Lithuania is a milestone in our ongoing journey to become fully licensed and regulated in our key markets around the world”, said Dr. Julian Hosp, Co-Founder and CEO of Cake DeFi. “I’m beyond proud of the hard work our team has put in to meet the stringent criteria of the financial regulatory bodies in Lithuania and to protect our users with strong anti-money laundering policies.”
As a member of the EU, Lithuania falls under the EEA (European Economic Agreement) which allows for “free movement of persons, goods, services, and capital within the European Single Market.” As a result, this will facilitate Cake’s registration with other EU member states once MiCA (European Markets in Crypto Assets) goes into effect in 2024.
Regulatory Friendly DeFi: Have Your Cake And Eat It Too
Cake DeFi will continue to operate as a DeFi platform within Lithuania despite the regulatory approval. This allows customers to avoid Know Your Customer (KYC) rules while also having peace of mind that the Singapore-based platform won’t lock their funds over territorial disputes with regulators.
Beyond just giving peace of mind and allowing users to avoid giving up their personal information, it also potentially protects against censorship and future censorship. MetaMask, you’ll recall, ran into some controversy (that they have denied) when Venezuelan users were temporarily banned from their platform.
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