MICAR

😲 Should crypto trading bot providers in Europe, like Oxido Solutions, be worried about the latest crypto law?

Last December, the Markets in Crypto-Assets Regulation (MiCAR) entered into force. This regulation aims to provide a comprehensive framework for crypto-assets within the European Union.

🤔 How does MiCAR impact our crypto trading bot company, Oxido Solutions?

In a word: minimally.

Why?

🌎 Most of our clients are based outside Europe.

🇪🇺 We provide our crypto trading bots as a SaaS solution from a non-European entity to a limited number of European institutional and professional investors.

We are a software provider and not a crypto service provider. Thus, we don’t require a MiCAR license:

✅ We don’t manage client capital

✅ We don’t offer financial advice

💚 Our clients have full control over how they use our bots, including risk management and choice of exchanges, managing their own funds or through a third party.

📴 This means our clients can stop using our bots at any time and turn off the buy and sell signals generated by our trading bots.

🙀 Why run a business where you have little control and risk clients not paying your performance-based software fee?

🏆 Because we trust our bots, which have built a successful track record since 2021. A happy client pays the performance fee; otherwise, our service stops. We’ve never had a client fail to pay.

💶 With our bots, clients can generate passive income with their chosen collateral. For example, they can earn more euros on Kraken, regardless of market direction.

Since July 1, 2024, the stablecoin USDC is MiCAR compliant and supported by our bots.

Additionally, under MiCAR, our European clients can still earn more Bitcoin with our bots. MiCAR does not cover fully decentralized crypto-asset services, so Bitcoin itself is not regulated by MiCAR.

☀ In short, our European clients, like those in LATAM, Asia, and other supported regions, can continue to benefit from our trading bots in the future.