Aave Labs announced on May 28 that two of its UK based subsidiaries, Push Labs Ltd. and Push Virtual Assets Ltd., have secured registration from the Financial Conduct Authority (FCA) to operate as crypto asset exchange providers in the United Kingdom.
The approval also authorizes the companies to issue electronic money under the UK’s Electronic Money Regulations 2011.
Aave Expands Further Into Regulated Crypto Infrastructure
In a statement shared on X, Aave said the FCA approvals will enable the company to offer regulated crypto services and payments infrastructure within the UK market, including stablecoin onboarding and withdrawal solutions.
Push Labs Ltd. and Push Virtual Assets Ltd. were assigned FCA reference numbers 1031720 and 1031721, while the electronic money authorization received reference number 900984.
Aave founder Stani Kulechov explained that the regulatory approval would help users move traditional fiat currencies directly into the Aave ecosystem through what he described as a “vertically integrated zero fee on ramp.”
Kulechov also connected the UK approval to Aave’s broader regulatory strategy across Europe, highlighting the project’s MiCA licensing framework through the Central Bank of Ireland for operations throughout the European Economic Area.
Aave Continues Expanding Despite Industry Challenges
The regulatory milestone arrives during a particularly active period for the protocol.
Earlier this week, Aave introduced a governance “Temp Check” proposal aimed at deploying Aave V4 on Avalanche. The proposal includes plans for a specialized liquidity hub focused on tokenized real world assets.
Former Ava Labs executive Luigi D’Onorio DeMeo commented on X that Avalanche has a major opportunity to develop onchain capital markets around the upcoming version of the protocol.
At the same time, the broader decentralized finance sector continues facing increased scrutiny following several major exploits throughout the year.
OpenZeppelin co founder Manuel Aráoz recently stated on X that he now considers “all DeFi unsafe,” arguing that artificial intelligence powered coding tools have shifted the advantage toward attackers.
Aráoz specifically mentioned Aave among the platforms he no longer views as secure.
Aave was impacted earlier this year by the KelpDAO exploit in April. However, recent discussions within the crypto community have largely focused on the protocol’s response to the incident.
Analyst Jose Fabrega praised Aave DAO for allocating approximately $58 million from its treasury to help compensate rsETH depositors affected by the exploit.
A recovery report published on April 25 also revealed that Kulechov personally committed 5,000 ETH to the “DeFi United” initiative, which was established to stabilize markets after the exploit created a deficit exceeding 100,000 ETH across interconnected protocols.
AAVE Token Remains Under Pressure
Despite the positive regulatory development, Aave’s native token continued to struggle alongside the broader crypto market.
According to CoinGecko data, AAVE was trading near $81 at the time of writing after declining roughly 5% over the previous 24 hours.
The token has also fallen nearly 10% over the past week and approximately 17% during the last month.
Even with the recent price weakness, Aave remains one of the largest decentralized lending protocols in the crypto industry, with total value locked exceeding $13.6 billion.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
