A cryptocurrency exchange has achieved regulatory approval to function as a Virtual Asset Service Provider (VASP) in Bulgaria. This license allows the platform to offer services such as trading, custody, and other digital asset functionalities while preparing for expanded compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations.
Previously, in December, the exchange expressed plans to establish a regulatory base in Lithuania. However, it now appears that Bulgaria has become the favored location for this initiative.
The exchange has officially received authorization from Bulgaria’s National Revenue Agency, enabling it to operate as a VASP. This regulatory certification allows it to facilitate cryptocurrency trading, custody, asset transfers, public offerings of digital assets, and wallet services within the region. The approval is particularly timely as the exchange seeks to align with the EU’s MiCA framework, which is aimed at standardizing the regulations governing digital assets across member states.
The Chief Legal Officer stated that the VASP license’s successful application in Bulgaria represents a critical part of the expansion strategy aimed at serving users throughout the European Union. With the EU taking steps to lead in regulatory frameworks like MiCA, there is significant potential for sustainable growth and innovation while ensuring compliance. Bulgaria is seen as an important entry point for broader expansion into Europe, providing an environment conducive to crypto adoption.
This new Bulgarian license supplements the existing regulatory endorsements the exchange has secured in various European countries, including Poland, Italy, Lithuania, and the United Kingdom. Additionally, the exchange has received licenses in El Salvador and has successfully launched compliant operations in Vietnam.
Interestingly, just months prior, there was a focus on building a compliance team in Lithuania, which was considered the primary hub for regulatory activities in Europe. However, shifting circumstances indicate a preference for Bulgaria as the location to centralize operations.
With the new VASP license, the exchange is now also equipped to handle cryptocurrency-to-fiat conversions and provide institutional custody services, alongside establishing a framework for potential local token offerings.
Looking ahead, there are ambitious plans for global scaling by 2025, with an emphasis on adhering to compliance standards across all operational jurisdictions. This proactive approach aims to enhance user trust and facilitate long-term growth in harmony with evolving regulations globally.
The exchange currently serves over 100 million users across more than 150 countries. It has been pursuing a variety of initiatives, including sports marketing partnerships and strategic regional expansions. Concurrently, a supporting tool, designed for building non-custodial crypto portfolios, has reportedly reached approximately 60 million users, reflecting a significant increase in adoption during the year.
In summary, the successful acquisition of a VASP license in Bulgaria marks a significant move for the cryptocurrency exchange, facilitating a broader range of services while aligning with upcoming regulatory standards in Europe. As it continues to expand its compliance-driven operations, the exchange positions itself for future growth and innovation across diverse markets.