Key Takeaways:
Push Labs Ltd. and Push Virtual Assets Ltd., the UK subsidiaries of Aave Labs collectively known as Push, received approval from the Financial Conduct Authority to register as cryptoasset exchange providers in the UK, the company said May 28.
The registrations under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 allow Push to exchange cryptoassets for fiat and vice versa. The approvals add to the group's existing FCA Electronic Money Institution authorization under the Electronic Money Regulations 2011 (firm reference number: 900984), creating a dual-permissioned framework for regulated crypto services.
"With regulatory permissions now established across both the UK and EEA, we are well positioned to scale product development and deliver secure, trusted user experiences across these markets," Stani Kulechov, founder and CEO of Aave Labs, said.
The dual structure enables Push to build full-stack fiat-to-crypto infrastructure, including zero-fee on-and-off ramping for GHO, Aave's native stablecoin, and other stablecoins. The company plans to launch next-generation on-chain consumer financial products in the UK market, targeting mainstream users who currently face high spreads and processing costs on centralized exchanges.
Regulatory footprint spans UK and Europe
The UK approvals build on Aave Labs' European expansion under the European Union's Markets in Crypto-Assets Regulation. In November 2025, Push Virtual Assets Ireland Ltd. secured a Crypto-Asset Service Provider license from the Central Bank of Ireland, enabling passporting of services across the European Economic Area.
The coordinated regulatory strategy positions Aave Labs across two of the world's largest crypto markets as the UK moves toward a fuller financial services regime for digital assets expected in 2026. The FCA's current framework focuses on anti-money laundering registration, with broader authorization rules under consultation.
DAO backs expansion with $25M funding package
The regulatory push follows financial backing from the Aave DAO, which approved a funding package worth $25 million in stablecoins and 75,000 AAVE tokens under the "Aave Will Win" framework. The stablecoin allocation covers operational costs over the next 12 months, while the AAVE token allocation vests across four years.
Under the approved framework, revenue from products such as Aave Pro flows directly into the DAO treasury, while the community treasury funds Aave Labs' operations. The company has confirmed Aave V4 as the protocol's long-term technical architecture, designed for enhanced capital efficiency and institutional-grade offerings for real-world assets.
The approvals signal that DeFi protocols can operate within regulatory guardrails while maintaining core innovation. For the broader crypto ecosystem, Aave Labs' successful navigation of both FCA and MiCAR processes may encourage other protocols to seek regulatory clarity in the UK and EU, potentially accelerating institutional participation in decentralized finance.
This article is for informational purposes only and does not constitute investment advice.
