EFRI Goes After StablR’s Malta Licence — Will Kraken’s New Stake Survive the AML Storm?

In an official letter, the investor protection  European Funds Recovery Initiative (EFRI) has urged the Malta Financial Services Authority (MFSA) to re‑examine Electronic‑Money licence of the stablecoin issuer StablR, citing undisclosed Payvision‑linked AML baggage. The call lands just days after crypto exchange Kraken proudly took a “strategic investment” in the very same issuer. 

5 Key Points

1. Formal Complaint – EFRI’s letter to MFSA and copied to EBA demands an immediate review of StablR Ltd’s EMI authorisation (Source: efri.io)
2. Legacy Risk – StablR’s CEO Gijs op de Weegh and several executives are ex‑Payvision, the Dutch PSP fined for laundering boiler‑room proceeds. FinTelegram flagged this repeatedly.
3. Licence Gaps – EFRI says StablR’s white‑paper omits Payvision’s money‑laundering record, violating MiCA Article 14 (“no misleading omissions”).
4. Kraken Angle – On 21 July 2025 Kraken announced a minority equity stake, praising StablR’s “compliance culture.” (Source: globenewswire.com)
5. Regulatory Clock – MFSA has 20 working days to respond under its own Procedural Rulebook once a licence‑review request is filed.

Short Narrative

EFRI, the Vienna‑based victims’ lobby that battles cyber‑payment facilitators, has fired a compliance broadside at Malta’s MFSA. Its 11‑page dossier argues StablR’s management “concealed material AML findings” tied to their Payvision past, making the 2024 EMI licence “null ab initio.” 

The move comes amid StablR’s PR blitz: a €‑stablecoin (EURR) on “50+ exchanges” and fresh cash from U.S. heavyweight Kraken. The juxtaposition—regulator under pressure, investor piling in—frames a looming showdown over who vets Europe’s stable‑money pipes.

Extended Analysis

Legal Hooks:

• MiCA Articles 5 & 14 require full executive track‑record disclosure; failures can trigger licence suspension (Art. 82).
• MFSA Rulebook allows “revocation for false or misleading statements” (EMI Rule 1.3.13).
• Cross‑border twist: If MFSA reopens the licence, ESMA could weigh in under the “significant tokens” regime once EURR supply passes €100 m.

Operational Fallout:

• Kraken’s EUR funnels could freeze if MFSA suspends issuance; exchanges reliant on EURR order‑books would face liquidity fragmentation.
• Competing euro‑stablecoins (EURC, EURT) may seize market share, citing “cleaner UBO files.”

Political Optics:
Malta, still scarred by past fintech scandals, risks a new grey‑listing narrative if it ignores EFRI’s red flags.

Actionable Insight

Compliance teams should revisit counter‑party risk matrices: tag EURR/USDR as conditional until MFSA publishes its stance. Liquidity desks: set alternative rails (SEPA, EURC) in case of sudden EURR redemption limits.

Call for Information

Have docs on StablR’s funding rounds, Payvision connections, or Kraken’s due‑diligence memo? Reach out securely via Whistle42.com—rewards in crypto.