European Union (EU) member state Lithuania has approved a ‘Virtual Asset Service Provider’ license for Taiwanese blockchain fintech project XREX. The decision enables the Taiwanese crypto firm to get a foothold into the broader European market.
Founded in 2018, XREX is a Taipei-headquartered neo-fintech company that offers a variety of blockchain-driven financial services, including online escrow service BitCheck, and the crypto-fiat XREX Exchange.
Upon setting up shop in Lithuania, XREX will provide exchange operations for cryptocurrency against fiat money, AML compliance, and virtual currency wallet services in accordance with Lithuanian regulations. Lithuania stands as the EU’s biggest fintech hub by the number of licensed companies.
XREX Acquires Lithuania’s Official Approval as a Crypto Asset Service Provider https://t.co/Xi4GpQOehMA Goal of Building Bridges— XREX Inc. (@xrexinc) May 24, 2022
The Lithuanian-approved license to act as a crypto service provider is the first of its kind for the East Asian country within the European Union. XREX has previously obtained ‘Trust and Company’ service approval as well as a ‘Financial Institution’ license in Estonia.
A company blog post stated: “XREX aims to bridge advanced economies and emerging markets, including India, Africa, the Middle East, and more. Operating in Lithuania will help XREX reduce the distance between the EU and developing countries.”
A significant portion of the company’s clients consists of cross-border merchants, small and medium enterprises, and individuals working abroad.
The XREX Exchange currently supports nine cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), USDT, XRP, Bitcoin Cash (BCH), Solana (SOL), Polkadot (DOT), Maker (MKR) and Chainlink (LINK). Reportedly, the XREX Exchange is the world’s only crypto-fiat exchange platform that supports the U.S. dollar and Indian rupee.
Earlier this year, the Taiwanese fintech acquired a ‘Money Services Business’ license from the U.S. Financial Crimes Enforcement Network (FinCEN), and Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC).
The firm is also in the process of applying for a ‘Payment Institution’ license in Singapore, and a ‘Virtual Asset Exchange’ license in Dubai, United Arab Emirates.
Taiwan is the 8th largest economy in Asia, and the 18th largest in the world based on purchasing power parity, according to the International Monetary Fund (IMF). The country also holds an important position in the global economy, being one of the key players in the information and communication tech industry, and holding one of the largest forex exchange reserves.
With its public interest in blockchain reaching an all-time high last year, the local Financial Supervisory Commission (FSC) imposed strict Anti Money Laundering and Know Your Customer requirements when dealing with cryptocurrencies in April 2021.