Aave Labs receives FCA registration for UK crypto exchange

Aave Labs, the development team behind the decentralized finance protocol Aave, has secured regulatory approval for its operations in the United Kingdom. The company announced on May 28 that its two UK subsidiaries, Push Labs Limited and Push Virtual Assets Limited, have been registered by the Financial Conduct Authority as cryptoasset exchange providers.

The registration permits the subsidiaries to offer crypto exchange services, including converting between fiat currency and digital assets, under UK anti-money laundering regulations. This approval builds upon an existing authorization the entities hold as an Electronic Money Institution, which allows them to issue electronic money and provide payment services. Company officials described this combination as a dual-permissioned model that creates a foundation for regulated cryptoasset activities and payments infrastructure in the UK.

Aave Labs founder and CEO Stani Kulechov stated that the regulatory foundation will be used to deliver next-generation, zero-fee on-chain consumer financial products. A primary commercial goal is to enable users to move money directly from bank accounts into the Aave ecosystem through what the...