A cryptocurrency exchange has recently acquired regulatory approval to operate as a Virtual Asset Service Provider (VASP) in Bulgaria. This license authorizes the platform to offer a range of digital asset services, including trading and custody, as it gears up for compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations.
In December, the exchange had indicated a preference to set its regulatory hub in Lithuania. However, recent developments suggest a strategic move towards Bulgaria as the chosen location for its regulatory operations.
The National Revenue Agency of Bulgaria granted the crypto platform the authority to function as a VASP. With this regulatory endorsement, the exchange can now provide services such as cryptocurrency trading, asset custody, and transfers within Bulgaria. Additionally, it is allowed to facilitate public offerings of digital assets and provide wallet services in this jurisdiction.
This authorization is a significant step as the firm aims to adhere to the EU’s MiCA framework, which is designed to create uniform regulations for digital assets across member states. The Chief Legal Officer of the exchange expressed that successfully obtaining the VASP license in Bulgaria is integral to its expansion strategy within the European Union. The focus on compliance with regulations like MiCA is viewed as a pathway for sustainable growth and innovation in the region.
The recent approval adds Croatia to a list of jurisdictions where the exchange has already secured regulatory licenses, which includes several European countries like Poland, Italy, Lithuania, and the United Kingdom. The platform has also gained authorizations in regions such as El Salvador and maintains compliant operations in Vietnam.
Initially, there was a focus on establishing a compliance team in Lithuania to navigate MiCA regulations, and plans were set with this Eastern European country being highlighted as the European hub. Nonetheless, the shift towards Bulgaria indicates a strategic realignment in operations.
Under the VASP licensing terms, the platform can extend its services to include cryptocurrency-to-fiat conversions, alongside institutional custody options within Bulgaria. This lays a foundation for potential token offerings in the local market, enhancing the exchange’s service portfolio.
Looking toward the future, there are plans for ambitious global scaling by 2025, emphasizing strict adherence to compliance standards in all engaged jurisdictions. This strategy is designed to bolster user trust, ensuring longevity as operations align with emerging global regulations.
Currently, the exchange claims to serve over 100 million customers across more than 150 countries, reflecting significant growth in its user base. Recent initiatives have included sports marketing partnerships and regional expansion to promote the platform further.
Contributing to its popularity, the exchange has also launched a non-custodial crypto portfolio-building tool, reaching a milestone of 60 million users and achieving a remarkable growth rate of 300% in 2024.
The recent regulatory developments and expansions signal a commitment to establishing a strong foothold within the European cryptocurrency landscape while embracing compliance across all operational areas.