ETHLend, a crypto-to-crypto lending platform, has started a process to obtain a license on lending activities in over thirty countries in the European Economic Area (EEA). ETHlend’s initiative will also include other countries as well with its helping expand its current business model (crypto-to-crypto lending) to provide financing in FIAT currencies such as EUR, USD, and GBP against cryptocurrency holdings.
Widening the business model of ETHLend
ETHLend’s initial goal was to provide cryptocurrency lending with the use of digital assets as a collateral for the loans. However, due to the vast number of requests, the project will again be expanding the current crypto-to-crypto business model to cover FIAT lending, enabling users to pledge cryptocurrencies and receive FIAT currency as a loan.
The group is highly specialized in smart contract development and decentralised applications, having already seen an eventful Q1 2018. Subsequently, the ETHLend team feels that there is a need for a smart contract-based transaction system within the fiat-to-crypto lending ecosystem.
As such, ETHLend is pushing for a more transparent approach to lending, with the need for less failure points across all lending activity. The group has consistently advocated for this approach with ETHLend now opting to provide these value additions to the fiat-to-crypto lending community.
Raising the bar for compliance in crypto-lending
The ETHLend team considers safety and compliance as some of the most important factors in crypto lending. As crypto-to-crypto lending is becoming more popular each day, it is paramount that lenders and borrowers are able to conduct safe and compliant transactions. By being able to guarantee such security and safety, ETHLend can be distinguished to become a reputable and safe marketplace for collateral-based cryptocurrency lending.
ETHLend’s next step is to implement KYC identification during the Q2 2018 on a decentralised application by using a third-party KYC provider and complying with all the applicable data protection laws. By exchanging know-your-customer policy, the group is able broaden its services to more institutionalised borrowers and lenders in demand.
Overview on licensing for lending activities
Of note, ETHLend has started the licensing process to be able to provide services (crypto-to-crypto and FIAT-to-crypto) in the following European Economic Area (EEA) countries: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the UK.
Moreover, ETHLend will kick off the second stage of its upgrades, culminating in additional licensing processes in the United States. This includes state-by-state licensing (starting from the states with most in demand based on our research) and in selected countries in Asia and other parts of the world.
These jurisdictions were specifically targeted based on ETHLend’s advanced research that was able to pinpoint the highest demand for lending activity. Its goal is to reach businesses (including institutional users) and consumers as well – ETHLend will be announcing more information on the additional regions during a later stage of the licensing process.
By providing additional compliance to cryptolending market and broadening its lending operations to FIAT lending, ETHLend is working to become a more attractive platform beyond the cryptocurrency communities.