The Financial Supervisory Authority of Iceland (FME) has approved Reykjavik-based Monerium as its first electronic money institution.
The designation, announced on May 14, means that Monerium has regulatory approval to provide fiat payment services on a blockchain and use it throughout the European Economic Area. Electronic money is a well-established regulatory framework in Europe that’s been in use for years, Sveinn Valfells, CEO and co-founder of Monerium, explained.
It's the first time, however, electronic money has been approved for use over a blockchain.
Monerium sees the fact that it's working under an established framework as a competitive advantage, Valfells said, adding: "For practical purposes, fiat will be the currency most people and institutions will want to use in the near- and medium-term. And if you are touching fiat in any way, you just have to comply with the relevant regulations."