Journalists assess EU jurisdictions’ attractiveness for crypto firms

Of the 2,000 registered crypto firms in the EU, 938 are based in Poland—nearly twice as many as Lithuania in second place (499). The data were obtained by journalists from DL News.

The publication explains the situation as the ease of registration in Poland—the process takes no more than two weeks, and costs run at around €150. Companies are not required to have a physical office. A key advantage is access to other countries in the economic bloc.

“Some register in Poland just to anchor themselves in the EU,” explained the lawyer from tau.legal, Yaroslav Novatsky.

The MiCA law coming into force in December 2024 could reshape the regulatory landscape in the region. In the remaining 15 months, Poland and other member states will compete for positions to draw crypto-related business to their side.

Local authorities will need to adapt their rules to the Brussels regime, and those who move fastest may gain a key advantage. Under MiCA, a crypto firm based in any EU country can, with little effort, obtain a ‘passport’ to operate in any other member state.

According to the expert, the leadership of such firms in Poland will have to do little more than declare compliance with anti-money laundering laws and provide evidence of crypto-related practices. An additional barrier will be obtaining a license, which is a more stringent process than registration.

Journalists point to France’s ambitions to take a leading position. Obtaining a license here could take up to a year, but authorities intend to adapt their local legislation well before MiCA comes into force.

According to the publication, France has a good chance of delivering on this plan, because besides a clear regulatory framework, it needs an entrepreneurial culture that attracts talent, financing, and large players.

“For this kind of service providers, it is necessary to create an ecosystem,” explained Francesco Paolo Patti, a lecturer at Bocconi University in Milan and a member of the European Legal Institute.

At present, this status has been earned by only the Societe Generale subsidiary—the Forge firm.

“Industry giants like Circle and Binance realise that obtaining this license today, tomorrow will grant them permission to operate under MiCA,” explained Patti.

In March 2023, French authorities adopted a number of new rules for licensing and registering cryptocurrency firms. The amendments proved milder than those proposed earlier.

In April AMF began accelerated review of applications from supervised crypto firms to comply with the joint European MiCA rules.