Asset management giants ramp up investment in digital assets: Exploring the compliance path for Solana ETN stake

In the global digital asset field, compliance regulation has become a key issue that Web3 companies must face. A leading global asset management company recently launched Solana Exchange-Traded Notes (ETN) in Europe, introducing staking functionality. This innovative move not only involves investment opportunities but also touches on a new height of compliance for digital assets.

Simplify staking, strengthen compliance

The Solana ETN launched by the company provides investors with a way to earn stake returns without directly holding Solana tokens. This ETN employs a fully managed staking mechanism, with all staking assets managed by a regulated custodian, ensuring that investors do not need to participate in the actual staking process, while the staking returns will automatically be reflected in the token equity.

This design is quite attractive for investors seeking to simplify operations and avoid the risks associated with direct management of digital assets. However, behind the superficial simplification lies a set of intricate compliance arrangements and multi-layered legal protections. The company emphasizes that it does not involve the use of derivatives, and all assets are stored in strictly regulated custodial banks, such as a licensed custodian institution in Liechtenstein. These measures further enhance the security and compliance of the investments.

Challenges of the Dual Regulatory Framework

When discussing the compliance of the Solana ETN, two important regulatory frameworks must be mentioned: Liechtenstein's Blockchain Act and the European MiCA regulation (Markets in Crypto-Assets Regulation). As a member of the European Economic Area (EEA), Liechtenstein's Blockchain Act is one of the first laws in the world to comprehensively regulate blockchain and digital assets.

The MiCA legislation represents the EU's effort to establish a unified regulatory standard for the entire digital asset market. In theory, Liechtenstein, as part of the EEA, will follow the requirements of MiCA. However, due to Liechtenstein's Blockchain Act being implemented before the MiCA legislation, it provides local crypto businesses with more flexible and specific regulatory guidance.

This dual regulatory framework presents both challenges and opportunities for digital asset companies. On one hand, the Blockchain Law provides specific legal protection for companies; on the other hand, with the advancement of the MiCA legislation, companies need to dynamically adjust their compliance strategies to meet the newly established EU standards. This requires companies to find a balance between the two regulatory frameworks to ensure business compliance and market competitiveness.

Global Compliance New Trends

As the MiCA regulation gradually takes effect, countries like Liechtenstein will have to integrate local regulations with the new EU rules. Future compliance requirements will shift from "understanding local regulations" to "achieving multi-level compliance within a global framework." Global Web3 enterprises operating in different jurisdictions will need to face varying legal environments and regulatory changes.

Compliance service providers must have an in-depth understanding of local laws and closely monitor the potential impact of regional regulations on client businesses to provide optimal compliance solutions. As the regulatory environment continues to evolve, companies need to keep a continuous watch on compliance dynamics and actively adjust their strategies to develop steadily in the global digital asset market.