VELO Protocol is about to be submitted for MicAR-compliant application in the EU
- VELO Protocol has published its MiCA-compliant crypto asset whitepaper in iXBRL format.
- This is not a “nice to have”, but is now a requirement for applications for permission for public token offerings in the EU under MiCAR.
Velo Protocol (VELO), a Layer 1 financial protocol for international transactions, has published a MiCA-compliant white paper, thereby meeting the disclosure requirements of the EU Regulation 2023/1114. This is a prerequisite for public token offers and for admission to European trading venues.
According to AInvest, the white paper is in machine-readable iXBRL format, a technical standard required by the ESMA taxonomy for MiCA white papers. It contains detailed information on token characteristics, governance structures, risks, energy consumption and other content requirements.
MiCA white paper is mandatory
The MiCA White Paper is a mandatory disclosure for applicants. But its very existence does not give the publishers any special official status compared to companies that cannot produce a white paper.
Nevertheless, the publication marks a clear distinction between projects that are simply exploring the EU market and those that are actively working towards market entry.
The white paper documents the compliance of future applicants, it increases the likelihood of a listing on the EU crypto exchanges and it provides them with a professional presentation to future institutional investors in advance.
The MiCA rules require that white papers be published in inline XBRL format. VELO already meets this requirement – a signal to regulators and partners that the project is technically and organizationally “MiCA‑ready”.
Nevertheless, the white paper should not be confused with an official license application. It’s just a regulatory disclosure, but it carries some weight. VELO has thus created the basis for the license application to be very likely to be approved.
The EU regulatory environment
MiCA creates a unified EU crypto market. Projects that are compliant at an early stage benefit from EU passporting, clear rules for issuing and trading as well as ESG transparency – ideal conditions for gaining the trust of investors.
VELO follows the pattern of Circle (USDC/EURC), which relied on EU regulation very early on, when this was not yet a mandatory event.
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