A cryptocurrency exchange has recently acquired regulatory approval to function as a Virtual Asset Service Provider (VASP) in Bulgaria. This newly granted license allows the exchange to engage in various activities, such as trading, custody, and other digital asset services as it gears up for compliance with European regulations under the Markets in Crypto-Assets (MiCA) initiative.
In previous months, plans were set in motion for the establishment of a regulatory hub in Lithuania; however, the focus has now shifted to Bulgaria.
The National Revenue Agency of Bulgaria has officially authorized the platform to operate as a VASP, enabling it to facilitate cryptocurrency trading, custody services, and asset transfers within the country. Additionally, this license includes permissions for public digital asset offerings and wallet services.
This licensing move comes as the platform prepares to adhere to MiCA regulations aimed at establishing consistent standards for handling digital assets across EU nations.
According to a recent statement from the Chief Legal Officer of the exchange, securing the VASP license in Bulgaria aligns with the organization’s growth strategy across the European Union. The official noted that as the EU advances regulatory frameworks like MiCA, there exists significant potential for growth and innovation in the crypto sector while maintaining necessary compliance. Bulgaria, in particular, is seen as a critical entry point for expanding into the European market, promoting the adoption of cryptocurrency through its supportive regulatory ecosystem.
The newly acquired license in Bulgaria adds to existing regulatory approvals the platform has obtained in multiple European countries, including Poland, Italy, Lithuania, and the United Kingdom. Recently, the exchange has also gained authorizations in El Salvador and established compliant operations in Vietnam.
Interestingly, just a month prior, the company had expressed intentions to build a compliance team in Lithuania to align with MiCA guidelines and referred to Lithuania as its hub for European operations. However, the recent developments suggest a shift in those plans, favoring Bulgaria.
With the VASP license, the platform is positioned to manage cryptocurrency-to-fiat transactions and offer institutional custody services in Bulgaria, while also laying the groundwork for potential local token offerings.
Looking ahead, the organization aims to scale aggressively on a global level by 2025, with a commitment to meeting compliance standards in every region it operates. This proactive approach is intended to boost user trust and foster long-term growth by aligning operations with evolving global regulations.
Currently, the exchange has reported serving over 100 million users in more than 150 countries. Recent efforts have included forging partnerships in the sports marketing arena while also pursuing expansion strategies across various jurisdictions.
In parallel, the exchange’s Wallet service, which facilitates non-custodial cryptocurrency portfolio management, has experienced significant growth, reaching a user milestone of 60 million, marking a 300% increase in 2024 alone.
Overall, the recent developments highlight a strategic maneuver in the rapidly evolving landscape of cryptocurrency regulations in Europe, positioning the platform to better cater to a growing user base while adapting to an increasingly regulated environment.