Czechia Emerges as the Leading Crypto Hub in Europe, While France and Italy Gain Momentum

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Czechia Emerges as the Leading Crypto Hub in Europe, While France and Italy Gain Momentum

The latest report from the DL News Europe Crypto Tracker reveals some surprising results. Czechia has taken the lead as the prominent cryptocurrency center in Europe, with Italy and France also making significant progress. In contrast, Belgium seems to be lagging behind. In preparation for the implementation of the Markets in Crypto-Assets law (MiCA) by the end of 2024, DL News collected data from cryptocurrency registries across all 27 European Union member states. Previous findings indicated that Poland topped the list due to its straightforward and cost-effective registration process for crypto companies. However, Czechia has now surpassed Poland, with a remarkable 9,372 registered virtual asset service providers (VASPs) as of May 2022, which is around ten times higher than the second-place country. A significant portion of these entities in both Czechia and Poland consists of individuals, making up approximately 83% and one-third of their respective rosters. Czechia's Ministry of Finance acknowledged that the current number of registered VASPs may have increased since the last data collection. Further analysis of the complete list reveals that nearly 96% of the 11,474 crypto entities are concentrated in just five countries: Czechia, Poland, Lithuania, Italy, and France. On the other end of the spectrum, Hungary, Ireland, Cyprus, Germany, Finland, and Latvia have fewer than ten registrants each. The anticipated shift in crypto firm establishment regulations within the EU in 2024 under the MiCA law promises much-needed clarity, unlike the complex regulatory landscape in the United States. MiCA aims to replace the diverse systems in EU member states with uniform rules for licensing crypto companies. France and Malta have already begun aligning their domestic crypto frameworks with MiCA, attracting major players like Binance and eToro, who have obtained MiCA-compliant licenses in France. By adopting regulations in line with the post-MiCA era, regulators can provide businesses with the predictability they desire. Our data indicates that this trend will accelerate in the coming months, reshaping the competition for Europe's leading crypto hub.