Eastern European company, European ambitions
Przemysław KRAL
As Europe stands on the precipice of its most comprehensive cryptocurrency regulation to date, an unexpected trend is emerging – Eastern European crypto companies are increasingly positioning themselves as leaders in the evolving digital assets landscape. This shift comes as the Markets in Crypto-Assets (MiCA) regulation prepares to reshape the continent’s crypto industry by the end of 2024.
.The European crypto market has long been dominated by Western European and international players. However, the impending regulatory changes are creating opportunities for well-prepared Eastern European firms to expand westward. Among the most notable examples is zondacrypto, a Polish-born cryptocurrency exchange that has recently made significant inroads into Western European markets as evidenced by partnering up with top sports brands, such as Juventus FC, Atalanta Bergamo or Giro d’Italia.
What makes the Eastern European expansion particularly interesting is how these companies have turned their experience with stringent regulations into a competitive advantage. Estonia, for instance, implemented one of Europe’s most stringent crypto licensing regimes years before even MiCA was conceived. This caused a massive drop in the number of licensed companies operating there – by even up to 90%. zondacrypto was among few of those who remained. The companies who have survived this drop, already built the necessary infrastructure and compliance frameworks that others are now scrambling to develop ahead of MiCA requirements.
The Monaco Connection
.The French Riviera, particularly Monaco, has emerged as an unexpected hub for this East-meets-West crypto evolution. Recent months have seen increased activity in the principality, traditionally known for its private banking and luxury sectors. For example, zondacrypto has announced collaborations with brands such as Top Marques Monaco and the Princess Charlene of Monaco Foundation, culminating in a grand ZND token gala to celebrate the launch of the native token of the exchange. This is signalling a growing acceptance of digital assets in traditional financial circles.
The French market presents a particularly compelling opportunity for expansion. Recent studies show that French crypto adoption is growing at an unprecedented rate, with approximately 12.5% of the population now holding digital assets – a remarkable 28% increase year-over-year. What makes the French market especially attractive is its unique combination of technological sophistication and openness to financial innovation.
Young French investors are leading this charge, with those under 35 representing 57% of crypto holders, up from 50% in the previous year. This demographic shift signals a broader transformation in French investment culture, moving from traditional financial instruments toward digital assets. The data suggests that French investors are not just following global trends but are actively seeking new financial opportunities, with 23% considering acquiring crypto assets in the near future. Despite the growing adoption, there’s still a significant education gap to bridge – 48% of non-investors cite lack of knowledge as their main barrier to entry, while 30% express concerns about risk. This presents both a challenge and an opportunity for platforms to develop comprehensive educational initiatives and robust security measures.
MiCA: A New Chapter for European Crypto
.The implementation of MiCA by the end of 2024 represents the most significant regulatory change in the European crypto landscape to date. Industry experts estimate that over 90% of currently operating crypto platforms may need to significantly adjust their operations to meet the new requirements. MiCA will create a true level playing field, as every company will have to fulfill certain basic requirements. And, despite the optimistic outlook, challenges remain. The French financial regulator, AMF, has maintained a cautious stance toward crypto assets, while other national regulators are still developing their approaches to the sector.
However, this regulatory uncertainty hasn’t deterred expansion efforts. The key is to operate at the highest compliance level regardless of current requirements.
Looking Ahead
.As Europe moves toward a unified crypto asset framework, the success of Eastern European platforms in establishing themselves in Western markets could signal a broader trend. We’re seeing a maturation of the crypto industry where regulatory compliance and operational sophistication are becoming key differentiators. The next 18 months will be crucial as MiCA implementation approaches. While the regulation will undoubtedly reshape the European crypto landscape, it may also cement the position of those companies that had the foresight to prepare for stricter oversight.
The answer to that question might increasingly come from the east, marking a significant shift in Europe’s financial landscape.
