The European Union (EU) has witnessed a significant expansion in its cryptocurrency market, with nearly 1,000 new virtual asset service providers (VASPs) registered throughout 2023. This growth is evident from the total number of registered crypto assets in the 27-member bloc reaching 11,597. This surge precedes the implementation of the EU’s Markets in Crypto-Assets (MiCA) regulation, set to come into effect in December 2024, indicating a robust expansion of the market.
The increase in crypto registrations and service providers in Europe is noteworthy, especially as it occurs shortly before the EU is set to introduce its first comprehensive crypto regulation with MiCA. The anticipation of the potential impacts of this new legislation is a subject of widespread discussion among stakeholders in the industry.
MiCA will mark a new era for the EU, establishing new standards across the union and setting regulations for crypto service firms serving a population of 450 million. It aims to facilitate seamless operations of compliant firms across member states and could lead to competition among countries to attract crypto entrepreneurs benefiting from MiCA’s regulatory framework.
Czechia stands out in the European crypto registration race with 9,372 VASPs, a figure that has not gone unnoticed by market participants. The data suggests a significant portion of these registrations are individuals rather than companies, potentially complicating the market landscape.
Poland has also seen a notable increase in registrations in the last quarter of 2023, following Czechia with 1,067 records. While these countries are currently in the lead, the activation of MiCA by the end of 2024 could shift the dynamics, with other nations stepping up and attracting investors’ attention.
The EU’s crypto market is gearing up for a transformation with MiCA’s impending enactment, and the current growth in registrations is a prelude to the expected regulatory changes. The rise in VASPs and the proactive steps taken by countries like Czechia and Poland highlight the region’s readiness to embrace the evolving digital asset landscape.