Written by: Aiying
In the global landscape of digital assets, regulatory compliance is rapidly becoming a critical issue that every Web3 company must face. VanEck is a global leading asset management firm headquartered in the United States, founded in 1955, known for providing innovative investment solutions. VanEck's investment products cover multiple categories including equities, fixed income, commodities, and alternative investments, and in recent years, it has focused on the digital assets and blockchain technology sectors. According to Aiying, the scale of cryptocurrency ETPs in Europe has reached 2 billion euros, but the participation of institutional investors is relatively low, with individual investors being the main participants. Many wealth management companies have not made related allocations.
VanEck's goal is to allow investors to easily access these opportunity-rich asset classes by developing emerging markets and new financial instruments. Currently, VanEck has launched 12 token-based cryptocurrency ETPs in the European market. These ETPs include ETNs (Exchange Traded Notes) for Bitcoin and Ethereum, as well as the recently launched Solana Exchange Traded Note (ETN), which has sparked widespread discussion in the industry—not only involving innovations in investment opportunities, but also touching on new heights of compliance for digital assets. Recently, VanEck announced the launch of staking functionality for the Solana ETN in Europe.
How does VanEck achieve this under the dual regulatory framework of Europe and Liechtenstein? This article will delve into the compliance journey behind it, providing insights and reflections for practitioners in the Web3 industry.
1. VanEck's Solana ETN Staking: A Simple Yet Complex Compliance Path
The Solana ETN launched by VanEck provides investors with a way to earn staking rewards without directly holding Solana tokens. This ETN employs a fully managed staking mechanism—meaning all staking assets are managed by regulated custodians, who have full control over the staking assets and do not involve lending risks. Thus, investors do not need to participate in the actual staking process, and the staking rewards will automatically reflect in the token's equity, fairly distributed based on the investor's holding period after deducting 25% staking fees.
Such a design is highly attractive to investors seeking to simplify operations and avoid direct management risks associated with crypto assets. Behind this seemingly simplified appearance is a set of intricate compliance arrangements and multi-layered legal protections. VanEck emphasizes that it does not involve the use of derivatives, and all assets are stored in strictly regulated custodial banks—such as Liechtenstein's Bank Frick & Co. AG. As a licensed custodian, this bank is bound by Liechtenstein's (Blockchain Law), further enhancing the security and compliance of investments.
2. Dual Regulation: The Contest between Liechtenstein's (Blockchain Law) and the European MiCA Regulation
When discussing the compliance of VanEck's Solana ETN, two important regulatory frameworks must be mentioned: Liechtenstein's (Blockchain Law) and the European MiCA regulation (Markets in Crypto-Assets Regulation). Liechtenstein is a member of the European Economic Area (EEA), and its (Blockchain Law) is one of the first comprehensive regulations on blockchain and crypto assets in the world, aiming to establish a clear legal framework for tokens and trusted technology service providers (such as custodians and exchanges) to ensure safety and transparency in the fintech sector.
The MiCA regulation represents the EU's attempt to establish a unified regulatory standard for the entire crypto asset market. The introduction of MiCA aims to comprehensively regulate the issuance of cryptocurrencies and their trading platforms, ensuring investor protection and market transparency. Theoretically, as part of the EEA, Liechtenstein will follow the requirements of MiCA. However, since Liechtenstein's (Blockchain Law) was implemented before the formulation of the MiCA regulation, it has provided local crypto businesses with more flexible and specific regulatory guidance. Before MiCA is fully implemented, Liechtenstein's laws continue to support compliance for crypto activities.
This dual regulatory framework presents both challenges and opportunities for companies like VanEck. On one hand, the (Blockchain Law) provides specific legal protections for companies, allowing them to quickly initiate staking operations; on the other hand, as the MiCA regulation gradually progresses, companies like VanEck need to dynamically adjust their compliance strategies to meet the newly introduced EU standards. This requires companies to find a balance between the two regulatory frameworks to ensure compliance and market competitiveness.
3. Opportunities and Challenges for Compliance Consulting Firms: From Local Regulations to Global Frameworks
With the gradual implementation of the MiCA regulation, countries like Liechtenstein will have to integrate local laws with the new EU regulations. Future compliance requirements will gradually shift from 'understanding local regulations' to 'achieving multi-layered compliance within a global framework.' Furthermore, global Web3 companies must navigate different legal environments and regulatory changes when operating in various jurisdictions. Compliance service providers need to have a deep understanding of local laws while closely monitoring the potential impact of regional regulations (such as MiCA) on their clients' businesses, to provide the best compliance solutions. Aiying will share more practical client cases and continue to delve into regulatory analysis and compliance guidance, helping companies expand their business in a compliant and stable manner in the global market.
