E Money Network Is a MiCA-Compliant Blockchain: Here’s Why It’s a Big Deal

The crypto market has left its wild wild west days behind, and it is in the process of embracing regulations. This means that the existing blockchain and crypto infrastructure will either have to revamp itself to meet compliance requirements or retire from the market. E-Money Network is one of the world’s first blockchains to comply with the European Union’s (EU) MiCA regulations and this is a big win for Web3.

What Is MiCA?

Market in Crypto Assets (MiCA) is a framework that came into force in June 2023 to regulate the crypto market across Europe. The legislation delineates the rules for the issuance and transactions of crypto-assets and stablecoins. It also lays down regulatory requirements for crypto-asset service providers (CASPs). The emergence of MiCA makes one thing clear - that crypto-assets are here to stay.

MiCA classifies crypto-assets into 3 distinct categories, namely asset-reference tokens (ARTs), electronic money tokens (EMTs)/e-money tokens, and other crypto-assets. ARTs encompass crypto assets that maintain a stable value by referencing other assets such as fiat currencies, securities, commodities, physical assets like gold, and even other crypto assets.

EMTs are also fiat-backed tokens stored on the blockchain. However, unlike ARTs which can be pegged to multiple currencies and assets, EMTs have 1:1 backing with fiat currency.

The third category of crypto assets includes all other crypto assets that cannot be categorized as ARTs or EMTs. For example, blockchain-based utility tokens for accessing goods and services provided by the issuer of the token.

MiCA’s classification of crypto-assets has profound implications for the crypto industry, particularly for stablecoin issuers and crypto asset service providers (CASPs). The $150 billion stablecoin market faces stringent regulatory scrutiny, marking a significant shift towards transparency and accountability.

MiCA regulations are aimed at protecting the interests of its legitimate stakeholders and preventing the misuse of crypto-assets for illicit activities like conducting scams, funding terrorism, and money laundering. However, there are concerns regarding MiCA stifling growth and innovation in the industry. Businesses that are keen on operating within the EU will have to expend significant resources on meeting compliance requirements. This will prove to be exclusionary for small bootstrapped projects.

E Money Network’s Solution for MiCA Regulations

E Money Network is an L1 modular blockchain designed to foster an ecosystem for the tokenization of Real-World Assets (RWAs).

The difference between E Money Network and other RWA blockchains is that E Money’s revolutionary potential is not just hypothetical. Regulatory compliance is built into the E Money Network, which gives its products an edge over other similar products.

E Money Network's approach seamlessly aligns with upcoming regulations like MiCA (Markets in Crypto Assets) in Europe, establishing it as an early adopter in crypto regulatory compliance.

The platform distinguishes itself through four foundational proofs:

• Proof of Identity: Providing secure on-chain identity verification.

• Proof of Compliance: Incorporating on-chain Know Your Transaction (KYT) and Anti-Money Laundering (AML) modules.

• Proof of Ownership: Ensuring transparency via on-chain mechanisms.

• Proof of Custody: Offering on-chain custody solutions to safeguard assets.

A key advantage of E Money Network lies in its capability to facilitate the issuance and distribution of E-money tokens, backed by fiat currency while ensuring MiCA compliance. E-money tokens, backed 1:1 with fiat currency, enable expeditious transactions on a regulated blockchain. Owing to this capability, E Money Network is poised to capture a sizable market share of the current stablecoin market in Europe.

Thus, E Money Network’s MiCA compliance positions it to become the foundational network for all innovation in crypto spaces, particularly with RWAs.

E Money Network’s Testnet is Live

The E Money Network’s testnet went live recently. This allows users to have a first-hand experience of how the platform will function upon the launch of the Mainnet. The network recorded an impressive up to 1000 transactions per second (tps) during internal testing.

E Money Network has launched a rewards program in which users can complete social and on-chain quests. Developers also have the opportunity to win grants for building and deploying their applications on the testnet. More about the testnet, quest program, and grant program can be found here.

About E Money Network

E Money Network is the regulated Modular RWA blockchain powered by Scallop. Scallop is now streamlining its focus and mission towards leveraging blockchain technology and has launched E Money Network as its primary product. E Money serves as an L1 blockchain designed for seamless interoperability between DeFi 2.0 and RWA tokenization, effectively establishing a network to bridge the liquidity divide between Web 2.0 and Web 3.0.