DeFi protocol Soil’s business model receives nod from local financial regulator

June 26, 2023 10:08 PM AEST | By Invezz

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DeFi protocol Soil’s business model receives nod from local financial regulator — Image source: Invezz

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Soil, a blockchain-based lender and debt marketplace that seeks to bridge the gap between traditional finance and crypto, has received a major regulation boost after its business model was declared to be compliant with local Estonia finance markets regulations.

The DeFi protocol is built on the Polygon blockchain and offers a self-balancing crypto platform where traditional borrowers and lenders meet. Here established companies across the market divide can raise funds from loans borrowed from stablecoin holders, a novel product offering that is primed to reshape corporate debt and the fixed-income investments landscape.

Soil’s operations have been deemed compliant with the local regulations, the platform noted in a press release shared with Invezz on Monday. The protocol looks at this as a significant milestone, with approval a confirmation of the business model’s validity. The business model allows Soil to earn revenue from fees when they connect lenders and borrowers.

Jakub Bojan, CEO of Soil commented on the development:

“We hired several teams of lawyers from different countries and waited for long weeks to receive official confirmation from the local regulator that the activities planned on our Soil Platform are legal.”

Soil prepares for MiCA launch

The news comes as the broader crypto market is experiencing greater regulatory scrutiny. The European Union recently adopted its Markets in Crypto Act (MiCA) regulation. The UK is on the verge of passing its Financial Services and Markets Bill (FSMB)that brings more regulatory oversight on crypto assets.

Amid this regulatory push, several crypto companies and businesses have sought to align with requirements as the rapidly growing industry aims for greater mainstream adoption.

Bojan noted that Soil will continue to work towards further clarity as it pushes itself to the forefront of the crypto market. The platform’s quest for transparency and safety for its users is not therefore pointed to adapting to current regulations, but to upcoming changes envisioned in MiCA.

The protocol believes its actions will inspire more confidence in the investment community and the broader DeFi ecosystem.

The post DeFi protocol Soil’s business model receives nod from local financial regulator appeared first on Invezz.

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