xEURO is STEX token and based on Ethereum blockchain

xEuro has been created in order to provide a liquid stablecoin for the European and global markets, with rapid exchange to and from fiat. It brings to the table full transparency and compliance with European financial regulations

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What is xEURO

Most transparent and legally compliant stable coin automatically
convertible to fiat

xEURO (xEUR) is a token on the Ethereum blockchain that represents EUR.

It can be transferred on the blockchain, this means: fast, cheap and without the need for intermediaries such as banks or financial companies, and no one can confiscate or block them.

At the same time, the price of the token, unlike many other cryptocurrencies, is not volatile, you can exchange your tokens at any time for the price of one euro per one token: send the tokens to the smart contract address, and you will receive euros to your account. It's like traveler's checks but on the blockchain.

Using tokens is much more secure than credit cards, especially for payments on the Internet.

And you can use tokens in smart contracts, so it's programmable money.

To exchange xEUR to EUR and vice versa you have to pass user identification procedure provided by cryptonomica.net Once you pass the KYC procedure, you can automatically exchange xEUR tokens to euros and vice versa.

Exchange is provided by licensed financial institution Etna Development OÜ (Estonia), which is also operating Stex, one of the most transparent from the largest crypto exchanges (see reports from 'The Tie' investigations), trusted by over 300 000 users from more than 100 countries.

Technically xEuro is an ERC20 token on the Ethereum blockchain and it is already supported in almost all Ethereum wallets software, such as Metamask, MEW, Mist, Trust Wallet etc

xEUR is managed by smart contract: 0xe577e0B200d00eBdecbFc1cd3F7E8E04C70476BE


Is xEUR a 'virtual currency'?

Yes, it is. According to §3(9) of Estonian Money Laundering and Terrorist Financing Prevention Act of 27th November 2017:

‘virtual currency’ means a value represented in the digital form, which is digitally transferable, preservable or tradable and which natural persons or legal persons accept as a payment instrument, but that is not the legal tender of any country or funds for the purposes of Article 4(25) of Directive (EU) 2015/2366 of the European Parliament and of the Council on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, pp. 35–127) or a payment transaction for the purposes of points (k) and (l) of Article 3 of the same Directive;

Since xEUR 1) represent value in the digital form, 2) is not a legal tender of any country, 3) is digitally transferable, preservable and tradable, and 4) can be used as a payment instrument, it is a "virtual currency".

Is a license to provide such service needed, and does Etna Development OÜ have such a license?

Yes. According to Money Laundering and Terrorist Financing Prevention Act, "providers of a service of exchanging a virtual currency against a fiat currency" ( §3(9) 2) ) do need a license.

08.05.2018 Etna Development OÜ obtained following licenses from the Financial Intelligence Unit of Estonia:

  • FVR000142 Financial services, Providing services of exchanging a virtual currency against a fiat currency
  • FRK000120 Financial services, Providing a virtual currency wallet service
What are Etna Development KYC/AML policies?
See the Rules of procedure and internal audit rules compiled pursuant to the Money Laundering and Terrorist Financing Prevention Act, which were approved by the Financial Intelligence Unit of Estonia.
Is the sale of virtual currencies subject to value added tax?

No. The Court of Justice of the European Union has ruled that the the exchange of traditional currency for units of the virtual currency and vice versa is exempt from VAT based on the ‘currency’ exemption:

Article 2(1)(c) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax must be interpreted as meaning that transactions such as those at issue in the main proceedings, which consist of the exchange of traditional currency for units of the ‘bitcoin’ virtual currency and vice versa, in return for payment of a sum equal to the difference between, on the one hand, the price paid by the operator to purchase the currency and, on the other hand, the price at which he sells that currency to his clients, constitute the supply of services for consideration within the meaning of that article

(Skatteverket v David Hedqvist Case C-264/14)

See also 'Blockchain & Cryptocurrency Regulation 2019 | Estonia' by Prit Latt, Carel Kivimaa of PWC Estonia:

"For the purposes of VAT, cryptocurrencies are considered as the same currency as euros, etc. Thus, the usage of cryptocurrencies as remuneration is equal to the usage of legal tender and therefore out of the scope of VAT"

Can you sell xEUR to US residents and is xEUR a security under US Law?

Yes, we can sell to U.S. citizens, as far as they can make payment in EUR to our bank account.

No, U.S. law is not applicable.

No, xEUR is not a 'security' according to U.S. law.

US Supreme Court created the "Howey Test" in Securities and Exchange Commission v. W. J. Howey Co., 328 U.S. 293 (1946), see also: http://consumer.findlaw.com/securities-law/what-is-the-howey-test.html

Under the Howey Test, a transaction is an investment contract if:
1) It is an investment of money.
2) There is an expectation of profits from the investment.
3) The investment of money is in a common enterprise.
4) Any profit comes from the efforts of a promoter or third party.

Holder of xEUR tokens cannot get any income from this token. Price of one token is one euro, and it should not change. Holder of a token does not receive any dividends or income on this token. In fact, he even has to pay commission to exchange tokens back to fiat. Thus xEUR is clearly not a 'security' under the "Howey Test".

Can I use xEUR on cryptocurrency exchanges?
Yes. You can use xEUR on STEX and other cryptocurrency exchanges.
Can Etna Development OÜ block or freeze transfers of tokens from one Ethereum address to another?
No. We do not provide any transfer (not money, funds or electronic money transfer) service, and do not control the transfer of xEUR virtual currency tokens or using xEUR in smart contracts. This is provided by decentralized Ethereum blockchain. We provide only exchange service: fiat for virtual currency and vice-versa.
What are differences of xEUR from other stablecoins?
See an article with a good overview of the stablecoins market: Stablecoins Are Not the Future of Crypto — They Are the Present / by Yura Sherman / Hackernoon / 2019-05-16
Where I can get more information about virtual currency /cryptocurrency and blockchain regulations in Estonia/EU?
Cryptocurrency Regulations in Estonia / ComplyAdvantage
"Dealing with cryptocurrencies in Estonia – regulations and authorisation", by Roman Loban, HandelsHaus