VASP Registrations Hit Record Highs, DeFi Remains Unregulated, and Major Players Operating Without Licenses – Coincub Unveils the VASP Report 2024

Press Release

Dublin,  08/11/2024, 9:00 AM GMT: Coincub has revealed the VASP Registration Report 2024, detailing record growth in global digital asset service provider registrations, which increased to 6,223 from 4,467 in 2023. However, controversy surrounds leading players as questions of regulation and compliance emerge.

Key Insights:

• Europe: With 2,747 registrations, Europe dominates due to compliance measures under MiCA, and Poland alone registered over 1,000 VASPs. Europe’s regulatory environment remains favorable.
• Emerging Markets: South Africa and Turkey joined the VASP landscape in 2024 with 138 and 76 new registrations, respectively.
• North America: Retraction is evident as Binance and others pull back under SEC’s regulatory enforcement. Canada leads with 1,411 registrations, but the trend of companies exiting due to regulatory challenges is a wake-up call. 
• Coinbase: With 13 new registrations in 2024, Coinbase is expanding its global footprint, such as in Canada and Japan. 
• Binance: Despite expansion claims and a massive hiring spree in the legal department, Binance only registered three new licenses this year. The company has retreated from North America amid regulatory pressure while continuing to sell crypto in markets where it is banned or unlicensed.
• Emerging Players: Zero Hash and Revolut take compliance seriously, with eight registrations each. 
• DeFi Companies: Hex holds licenses across three countries (France, UAE, and Italy), and SCALLOP is licensed in Poland and Canada. However, the overall lack of DeFi in regulation is a significant gap.

Differences in Licensing Across Jurisdictions

The report highlights notable differences in crypto licensing across countries. Some countries have a single VASP license covering all crypto activities, while some require multiple licenses from multiple regulators to help them distinguish crypto from traditional finance. Poland, which is a leader in the EU for 2024, offers four distinct licenses, simplifying compliance for various activities and attracting numerous registrations. In the U.S., companies face multiple federal and state regulators, creating complex and sometimes inconsistent licensing processes. The European Union’s MiCA framework aims to streamline licensing across member states, which has helped in creating a unified approach to crypto licensing.

State of DeFi: Few Licensed, Many Unregulated

DeFi companies make up a small fraction, with only few licensed globally—representing about 6% of the total. Key jurisdictions for licensed DeFi companies include the USA, Brazil, Bermuda, and various European countries. With the proliferation of DeFi in the tech sector, DeFi-offering companies are pushing regulatory bodies to adapt. Still, the report also finds that DeFi-related activities could be subject to more regulation in the coming years as regulatory bodies push toward more transparency and security. That is because the likes of Uniswap, Aave, and Compound (leading DeFi protocols) remain unregulated, whereas the regulated ones are not as prominent in the industry. With billions in total value locked, this lack of regulation could lead to more regulatory challenges for autonomous DeFi protocols in the coming years.

About Coincub:

Coincub is a premier crypto intelligence provider, offering data-driven insights and analysis to help you navigate the cryptocurrency market. Coincub delivers up-to-date information on global crypto regulations, taxation, and market trends.

Media Contacts

Coincub:

Sergiu Hamza

CEO of Coincub

[email protected]

coincub.com