Cryptocurrency exchange BingX has obtained a MiCA license via its European subsidiary MEGE zweite GmbH following the approval of four crypto services by Austria’s financial watchdog on October 13, opening the way for a planned expansion across 29 European markets. The Financial Market Authority (FMA) of Austria issued the approval through a notice dated October 14. The approval will allow BingX EU to offer custody of cryptocurrencies, trading of cryptocurrencies for fiat currency, crypto-to-crypto trading, and transfers of digital assets. The firm is now ready to launch regulated services in the European Economic Area (EEA).
Austria’s FMA Approves Four Crypto Services Under MiCA
The approval was granted to MEGE zweite GmbH. The supervisory body recognised this business entity by its registration number FN 666009a. This is one of the entities authorised pursuant to Article 63 of the Markets in Crypto-Assets (MiCA) Regulation. This ruling of the FMA relates to four particular services. BingX EU is authorised to custody and manage crypto assets on behalf of its customers, exchange cryptocurrencies for regular money, trade crypto assets among themselves, and move digital assets for its clients.
The license does not cover all services that the cryptocurrency exchange may wish to provide. From the list published by the regulatory authority, there is no mention of operating a multi-lateral trading platform for cryptocurrencies, portfolio management, investment advisory services or leveraging derivatives contracts.
Thus, the authorisation for BingX EU applies to the specific list of services mentioned in the regulatory notice. Any extension to other regulated services will have to comply with the authorisation requirements. The exchange revealed the launch on October 14, stating that the authorisation will help the services for individual and institutional clients in Europe.
The declaration recognised 29 EEA countries as the intended service area, but access to each country will depend on cross-border arrangements which have to be put in place. The regulated services from BingX EU have not been provided with a timeline for being made available in the market. The announcement, however, indicated that the process is ongoing while the company engages the regulators in Austria and elsewhere in Europe.
The intention of BingX EU is to leverage the authorisation gained in Austria to serve clients outside the European market where its entity operates. The MiCA regulation enables the crypto asset service providers to provide authorised services in other European markets using what is known as passporting. The passporting process allows firms to operate using authorisation from their regulator while fulfilling the necessary cross-border notification requirements. Article 65 of the European Securities and Markets Authority provides guidelines on how the process is conducted.
