Crypto Exchanges Flock to Europe Amid MiCA Regulation
As the European Union's Markets in Crypto-Assets (MiCA) regulation comes into effect, crypto exchanges are setting up shop in Europe to secure licenses and capitalize on the region's growing institutional involvement. Major exchanges have already secured licenses under MiCA, which provides a clear regulatory framework and fosters stability. This has led to increased trading volumes from EU customers, with some exchanges reporting a 70% quarter-on-quarter increase in Q1 2025. However, compliance with MiCA requirements comes with its challenges, including strict controls around investor protection, capital requirements, and Anti-Money Laundering compliance. Our company, KvaPay, also runs for MiCA compliance, recognizing both the regulatory demands and the long-term benefits. Despite these challenges, industry executives believe that MiCA will drive healthy competition and increase trust in the European crypto market, ultimately leading to increased adoption and confidence among institutions and users alike.
European Central Bank to Pilot Blockchain-Based Euro Settlement System by 2026
The European Central Bank (ECB) has announced plans to launch a blockchain settlement pilot by late 2026 under its new Pontes initiative. The pilot will link blockchain-based distributed ledger technology (DLT) platforms with TARGET Services, a suite of financial services designed to facilitate payments and securities within the eurozone. The pilot aims to test a unified settlement system with central bank money, leveraging insights from the ECB's exploratory DLT trials in 2024.
Golden Visa Programs for Crypto Investors Shrink as Governments Rethink Strategy
Golden visa programs, which offer residency and citizenship in exchange for investments, are becoming increasingly scarce for crypto investors. Governments globally are rethinking these programs, which have been criticized for potential abuse and economic problems for residents. Malta's golden passport program was ruled illegal by an EU court, while Cyprus and Bulgaria ended their golden visa programs in 2021 and 2022, respectively. Other countries, such as Spain, have canceled their golden visa programs due to concerns about skyrocketing housing costs and economic problems. Despite the declining availability of golden visa programs, some countries remain open to crypto-related visa schemes. For example, Portugal's golden visa program is getting stricter, but still offers benefits for investors. Other countries, like El Salvador and Italy, have introduced new crypto-related visa programs. However, the trend is clear: governments are moving toward fewer and stricter regulations around golden visa schemes. According to Alessandro Palombo, co-founder and CEO of Bitizenship, "What's possible today may become legally impossible within months or weeks. This pattern is accelerating."
Societe Generale Partners with 21Shares to Provide Liquidity for Crypto ETPs
Societe Generale, a major European banking conglomerate, has partnered with 21Shares to provide liquidity for its cryptocurrency-based exchange-traded products (ETPs) in European markets. As part of the partnership, Societe Generale will offer over-the-counter (OTC) liquidity for 21Shares' Bitcoin and Ether ETPs, including its ABTC, CBTC, AETH, and CETH-tickered funds. This move is expected to improve execution, enhance liquidity, and simplify access to crypto investment vehicles for institutional investors. The partnership marks a significant milestone in Societe Generale's commitment to providing innovative liquidity solutions and enhancing access to a wide range of ETFs and ETPs for its clients. This move also aligns with the bank's blockchain push, which includes its blockchain subsidiary, Societe Generale-FORGE, partnering with Bitpanda to advance the adoption of its euro-denominated stablecoin EUR CoinVertible (EURCV). The partnership comes ahead of the implementation of the European Union's Markets in Crypto-Assets Regulation (MiCA) framework, which went into effect for crypto-asset service providers on December 30, 2024.
Europe Seeks Global Coordination to Prevent USD Dominance
The European Central Bank (ECB) has called for global coordination in regulating stablecoins to prevent the US dollar's dominance. ECB adviser Jürgen Schaaf outlined a range of strategic options for the European Union to address the rapid rise of dollar-based stablecoins, including regulated euro-pegged stablecoins, distributed ledger technology (DLT) applications, and the ongoing development of the digital euro. Schaaf emphasized the importance of unified global standards to avoid market fragmentation and regulatory loopholes. He noted that the US Genius Act is "broadly in line" with the EU's MiCA framework but more lenient in some areas. The ECB will decide on whether to move forward with the launch of the digital euro by the end of 2025, with a multi-pronged approach being considered to respond to the US stablecoin leadership.
Robinhood Sees Crypto Revenue Surge as CEO Doubles Down on Tokenization Strategy
Robinhood's crypto revenue has almost doubled to $160 million in the second quarter, driven by a 98% year-on-year increase in trading volumes. The company's total net revenue climbed 45% year-on-year to $989 million, while net income increased by 105% to $386 million. CEO Vladimir Tenev is betting big on tokenization, a strategy that involves turning real-world assets into digital tokens. He believes tokenization is the biggest innovation in the industry in the past decade and plans to lead the market in the US and abroad. Tenev aims to tokenize alternative assets that are currently inaccessible to retail investors, such as private shares and real estate. He has seen strong interest from developers and has already issued private equity tokens in Europe that resemble shares in companies like OpenAI and SpaceX.
If you’d like to learn more about tokenization in real-world applications, check out our blog post.