Bitvavo has secured a milestone in its European expansion strategy. The Austrian Financial Market Authority has granted the Dutch cryptocurrency exchange authorization to operate as a virtual asset service provider, allowing it to extend its offerings into Austria.
Building on its success in the Benelux region and an earlier approval in Italy, Bitvavo’s entry into Austria is part of its commitment to navigate the regulations of the European crypto market. Currently, the crypto platform has a pending application with the German Financial Supervisory Authority (BaFin).
According to a report by Fintelegraph, Bitvavo aims to become the go-to regulated crypto exchange in Europe, focusing on the DACH region. The company is leveraging on its expansion in the Benelux region, fueled by features like a user-friendly platform and a diverse range of over 200 cryptocurrencies, to position itself in the Austrian market.
We received regulatory approval as a Virtual Asset Service Provider from the Austrian Financial Market Authority 🇦🇹
This represents another step in our European expansion, allowing us to offer a wide range of crypto products and services to the Austrian community.@FMA_AT pic.twitter.com/Awzizb9SqM
— Bitvavo (@bitvavocom) November 13, 2023
Meanwhile, the Rotterdam court declared supervisory costs imposed on Dutch crypto firms, including Bitvavo and Commerce, in August as unlawful. This decision, which was made in 2021, carried potential implications for cryptocurrency oversight in the Netherlands and set a precedent for other companies facing regulatory challenges.
Bitvavo and Coinmerce, the successor to Binance in the Netherlands, partially won in its ongoing legal tussle against the Dutch regulator, who imposed approximately $2.3 million in fees.
Navigating Challenges in the Crypto Landscape
Besides that, Bitvavo expects to reclaim between 80% to 100% of the €280 million owed by Digital Currency Group (DCG), Finance Magnates reported early this year. This follows an in-principle agreement reached by DCG-owned crypto lender Genesis with its creditors on a restructuring plan.
Bitvavo anticipates the refund for its clients’ assets to be delivered in various forms, including cash, digital assets, and convertible preferred equity notes in DCG. The bankruptcy filing of Genesis, triggered by exposure to collapsing crypto firms in the preceding year, sent ripples through the cryptocurrency market.
The Netherlands has maintained a stringent regulatory stance on cryptocurrency firms, resulting in substantial fines for major exchanges like Coinbase and Binance. The court’s recent decision challenges the regulatory overreach, signaling a potential shift in how the government oversees the crypto industry.
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