VeChain (VET) Tokens Compliant with European Regulations After Receiving Confirmation from ESMA

VeChain has announced its tokens are compliant with European regulations after receiving confirmation from the European Securities and Markets Authority.

European regulatory authority the European Securities and Markets Authority has confirmed that VeChain tokens are compliant, the blockchain platform shared on Monday.

According to an announcement by the blockchain platform, its tokens are now compliant with the Markets in Crypto-Assets Register, or MiCAR.

This is after VeChain submitted its VET and VTHOR tokens whitepapers to ESMA, which has notified the platform of this registration.

Announcing the milestone, the VeChain team said: “This achievement sees VET and VTHO tokens compliant with European regulations in the unified MiCAR framework, allowing operations to continue and expand across EU member states.”

MiCAR is one more step towards mainstream adoption, the team added.

Announced in March 2023, the MiCAR framework will see VeChain able to “passport” its services and operations across all 27 EU member states.

This is because the regulation, effective since June 2023, has standardized crypto regulations for the bloc, with this aimed at enhancing market integrity and protecting investors.

ESMA, the regulatory watchdog for MiCAR, released its central register for digital asset white papers last year. The effective date of full Markets in Crypto Assets regulation was December 30, 2024.

As the designated authority for this regulation, ESMA has completed the registration of digital asset white papers submitted by issuers.

According to ESMA, the aim of the register is to increase transparency in the fast-growing digital asset markets.

“The lack of a common reporting framework creates difficulties for cross-border operations and may hinder the development of a single market for crypto-assets in the European Union,” ESMA Chair Verena Ross said.

ESMA is also collecting data on crypto-asset service providers in the EU to better understand the industry landscape.

Meanwhile, MiCAR adopts a phased implementation, with this going beyond 2025 and through 2026.

The first phase, which began in 2023, focused on registering digital asset white papers and issuers. This is now complete.

The second phase will see the creation of a central EU presence for crypto-asset service providers.

Finally, the third and final phase will see the introduction of a common reporting framework for crypto-asset service providers operating in multiple EU countries.

With MiCAR in place, blockchain platforms like VeChain have a strategic advantage that could see them exploit the opportunity to launch their programs in the EU.

In the case of VeChain, this is its X-2-Earn program, which is a sustainability-focused initiative.

X-2-Earn allows users to be rewarded for completing sustainable actions with varying levels of carbon reduction.