After a period that the blockchain industry seemed to slow down, it looks like things have started growing again. After an unstable and dark period and the fall of major players, the late awakening of the industry is going simultaneously with the approach of governments to implement new regulation regimes, and laws to make digital money and companies clearer and safer.
It seems that the initial excitement that surrounded the blockchain industry is still there. New and old ventures are now issuing dedicated VASP licenses in order to comply with the new regulations while understanding the importance of it.
According to open resources, the leading countries in terms of VASP licensed company volumes, include Canada with approximately 1,250 companies, Lithuania with around 700, Australia with around 500, Italy with around 100, Bulgaria with around 90, and Spain with around 70. This increase in licensing requests is indicative of a maturing industry, as companies are now taking compliance more seriously and seeking licenses to operate legally.
Poland, in particular, has emerged as one of the most attractive jurisdictions for VASP companies. The fact that obtaining a VASP license in Poland is comparatively easy, makes it an increasingly common spot for cryptocurrency enterprises. The country offers political stability, a favorable business climate, competitive operating costs, an advantageous tax regime, a robust banking system accommodating crypto transactions, and a strong commitment to combating money laundering and terrorism financing. Additionally, Poland benefits from a supportive ecosystem for startups and innovation, a strategic location at the crossroads of Europe with access to the European Union’s single market, and a high level of English proficiency among the workforce.
Porat Group, a reputable business group and law firm, with expertise in financial regulatory compliance, is uniquely positioned to counsel blockchain companies as the banking sector continues to resist the influx of fintech startups promoting alternatives to legacy payments technology. Porat Group facilitates VASP licensing globally and serves as a critical partner for clients in locating payment and banking solutions.
With a long track record of advising regulated companies on regulatory matters, Porat Group provides invaluable perspective into the challenges faced by blockchain companies. Our understanding of prevailing mindsets and concerns enables us to craft nuanced compliance solutions that reassures hesitant counterparties and facilitates market access.
Furthermore, Porat Group’s hands-on experience in establishing compliant fiat-to-crypto banking pipelines informs our licensing work and provides operational understanding unmatched by traditional law firms. We have firsthand knowledge of the intricacies involved in finding and maintaining reliable traditional banking partners in the blockchain space.
Ultimately, Porat Group’s specialized regulatory skill set, coupled with practical payment solutions expertise, allows us to guide blockchain companies through a complex landscape of regulatory and banking challenges. We serve as a bridge between the innovative digital asset economy and the more guarded traditional finance world. Our unique competencies make us well-positioned to support responsible blockchain adoption in an industry transitioning towards next-generation financial systems.
As the blockchain industry continues to evolve, the importance of regulatory compliance and obtaining VASP licenses cannot be understated. Companies that prioritize compliance and work with experienced legal partners will be well-positioned to thrive in this growing sector.
Written by David Woliner, Adv.
Head of Financial Regulation.
