How Are My Fiat and Crypto Assets Protected at Monflo?

How is Monflo regulated

Monflo is a Crypto‑Asset Service Provider (CASP) licensed under MiCA by the Dutch Authority for the Financial Markets (AFM). It complies with the Money Laundering and Terrorist Financing Prevention Act (Wwft), the Sanctions Act 1977 (Sanctiewet 1977), and all MiCA requirements. The AFM oversees our adherence to MiCA’s rules on customer conduct and organizational governance. De Nederlandsche Bank (DNB) does not exercise any prudential supervision over Monflo.

Is Monflo covered by the deposit guarantee scheme?
No, Monflo is not part of the traditional deposit guarantee scheme. Instead, we offer protection through a legal structure and segregation of customer funds. 

What happens to the euros (fiat) I deposit?
When you deposit euros into your personal IBAN account, they are transferred via our payment partner Monerium to a segregated bank account at LHV Pank in Estonia, within the European Union. At the same time, an equivalent amount of EURe (a stablecoin) is minted and credited to your personal custodial wallet at Monflo.

What is EURe and how is it protected?
EURe is an overcollateralized stablecoin issued by Monerium, a licensed Electronic Money Institution (EMI) under the supervision of the Central Bank of Iceland. Each EURe is backed by 102%, meaning the value of safeguarded assets exceeds the amount of tokens issued. Unlike traditional deposit guarantee schemes, protection is provided through mandatory legal segregation of customer funds, held in segregated accounts or invested in high-quality, liquid assets such as sovereign or corporate bonds

For more information, we kindly refer you to Monerium’s Terms of Business, available on their official website: monerium.com.

Why this structure and what is a Smart IBAN account?
A Smart IBAN account combines a traditional IBAN (for SEPA payments) with a custodial wallet (for on-chain transactions). This allows you to seamlessly switch between buying crypto and making everyday payments, such as rent or mortgage, all from one integrated environment.

How are my crypto assets protected?
Your crypto assets are managed by Stichting Monflo Custody (KvK 95839763). This foundation ensures that your assets remain strictly separated from those of Monflo itself. This is done through separate legal entities with segregated assets, so your crypto remains safe even in the event of Monflo’s insolvency.

Summary: Am I well protected with Monflo?
Yes, both your fiat and crypto are well protected at Monflo thanks to a strong legal structure: customer funds are strictly segregated, EURe stablecoins are overcollateralized and backed by 102%, oversight is provided by recognized financial authorities such as the Central Bank of Iceland, and your crypto assets are managed through segregated entities by Stichting Monflo Custody.