Is Europe the New Eldorado for Cryptocurrencies?

Throughout 2023, the cryptocurrency market has significantly grown in Europe. Nearly a thousand cryptocurrency platforms have positioned themselves in the European crypto market. This trend has been underscored by a significant increase in the number of registrations obtained by these entities in recent months. It is expected to continue with the entry into force of the MiCA regulation.

Nearly 1,000 new crypto entities registered in Europe in 2023

This year, the European Union (EU) has seen its cryptocurrency ecosystem expand significantly. According to recent data, nearly 1,000 virtual asset service providers (VASPs) have been registered in Europe in 2023.

This development is all the more noticeable as it increases the total number of registered crypto entities on the old continent. According to estimates, this total should reach at least 11,597 by the end of the year.

Czechoslovakia is leading the race for registration, with 9,372 VASPs registered. These figures should be taken with a grain of salt since the Czech data is not up to date, allowing for potential fluctuations.

Poland comes in second, with 1,067 crypto service providers taken into account in its registry. The country notes that about a dozen new VASPs per week have been registered during the last quarter of 2023, indicating continuous growth.

🇪🇺 For 2023, the number of registered #cryptocurrency companies in the #EU increased by almost 1,000 pieces. https://t.co/6DDTWbJ1TS

— GN Crypto 🇺🇦 (@GNcrypto_news) December 27, 2023

Even more entities attracted by MiCA regulation

More broadly, this upward trend in the registration of cryptocurrency platforms is not expected to slow down. Analysts believe that it is fundamentally set to increase steadily when the MiCA standard becomes fully applicable.

It seems that the EU member states are ready to compete to attract crypto entrepreneurs who are looking to take advantage of the MiCA rules. These will enable businesses to operate in a compliant and transparent manner throughout the EU.

As a reminder, MiCA is the EU’s first comprehensive regulation for cryptocurrencies. It is intended to establish uniform standards for businesses serving the Union’s 450 million residents.

It should be noted that despite the remarkable increase in crypto registrations, there are still concerns about a potential drop in registrations after MiCA comes into force. The reason being the stringent, thus exclusive, requirements it introduces in terms of capital, internal controls, and governance.