At the end of last year, specifically on December 30, 2024, Regulation (EU) 2023/1114, better known as the Regulation on Markets in Crypto Assets or MiCA, began to apply in the Republic of Croatia. For the first time, it introduces uniform business rules and supervision over the issuance of crypto assets, trading in crypto assets, and the provision of services related to crypto assets at the level of the entire European Union. In Croatia, the Croatian National Bank (HNB) and the Croatian Financial Services Supervisory Agency (Hanfa) are responsible for the supervision of this type of asset.
HNB is responsible for activities related to the issuance of asset-referenced tokens and those related to the issuance of e-money tokens, while Hanfa oversees notifications of token issuances that are not ART (asset-referenced token) or EMT (e-money token), the supervision of companies providing crypto services, and the supervision of cryptocurrency trading.
Defeating Results
But what has MiCA really changed? Electrocoin provided us with a brief answer to this question. They claim that MiCA is a comprehensive and very demanding legal framework designed at the level of the European Union to regulate crypto asset markets. Although it has created a certain legal certainty by introducing clear business rules in the crypto market, it should be noted that MiCA does not exclusively bring ‘good’ things.
– The initial results of MiCA are quite disappointing. Strict requirements have resulted in a ban on trading USDT, the largest and most popular stablecoin in the world, in the EU. USDT is a stablecoin whose daily trading volume is twice that of Bitcoin, making it almost crucial in the crypto space. The result of the ban on trading USDT in the EU will simply be that trading will move to other jurisdictions, and EU citizens will continue to use USDT just as much, only they will not buy it from domestic companies but from those outside the EU. Thus, for example, it is somewhat unclear what exactly has been achieved and how this ban protects EU citizens. The strict requirements and complex procedures prescribed by MiCA also significantly burden the entities affected by the regulation, including Croatian crypto companies. Consequently, the number of companies engaged in crypto business in Croatia has drastically decreased over the past two years, and all indications suggest that this trend will continue due to the extent and complexity of aligning business operations with MiCA’s requirements, as well as the costs incurred in compliance – they explain from Electrocoin.
Necessary New Approval
On the other hand, they add, MiCA opens up the possibility of licensing for foreign crypto companies in Croatia, so the two largest ‘Croatian’ crypto companies are actually foreign groups operating in the global market through their company in Croatia.
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Two times the daily trading volume of Bitcoin is the daily trading volume of USDT, the most popular stablecoin in the world, or a type of cryptocurrency whose value is tied to an external asset, in this case, the US dollar
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– In this regard, it can be assumed that only the largest companies, or those with sufficient financial and human resources, whether domestic or foreign, will be able to withstand the pressure of regulatory compliance – they state from Electrocoin.
Whether the largest will survive remains to be seen, but Hanfa currently supervises as many as 17 VASPs in the area of preventing money laundering and financing terrorism, and they must obtain Hanfa’s approval by July 1, 2026, in order to continue providing such services.
Growth in Demand for Cryptocurrencies
One of them is, of course, Electrocoin, from which we confirmed that interest in introducing crypto payments is not waning, and with the rise in cryptocurrency prices in the global market, interest in integrating this type of payment is consequently increasing.
– Electrocoin has successfully integrated the option of cryptocurrency payments with over three hundred partners at more than three thousand locations, and companies choose this option mainly due to cheap and fast transactions, unlike traditional methods – they emphasize from the company.
Indeed, many domestic companies have introduced cryptocurrency payments. The most notable are, for example, Konzum, LAQO, and iNovine, as well as various hospitality establishments that want to be ‘on trend’ and offer their clientele all forms of payment. They also see greater interest in cryptocurrencies at Electrocoin, where they believe it is a result of the trend of rising prices, but also other factors.
– The approval of Bitcoin and Ethereum spot ETFs, the development and use of appropriate regulatory frameworks for the crypto industry, and the increasing integration of cryptocurrencies into more and more industries are just some of the reasons that have further strengthened the credibility of the entire crypto industry, and cryptocurrency prices are merely a byproduct of these reasons. It is worth mentioning that Donald Trump’s victory in the U.S. presidential elections also strongly influenced speculation within the crypto market, sparking a wave of optimism among investors due to promises of potentially more favorable regulatory approaches to cryptocurrencies. However, without clear legal support and a stable regulatory framework, it is difficult to expect long-term positive effects, but all these factors certainly influence the growth in demand for cryptocurrencies over the past year – they explain at Electrocoin.
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MiCA opens up the possibility of licensing for foreign crypto companies in Croatia, so the two largest Croatian crypto companies are actually foreign groups operating in the global market through their company in Croatia
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Trendy Memecoins
Of course, it is difficult to speculate or predict anything, but today the trend in the market is the so-called memecoins, or meme-tokens, which achieve incredible numbers daily.
– The popular platform for launching memecoins on the blockchain Solana called pump.fun has achieved a trading volume of approximately $980 billion in the last thirty days, which is more than the second-largest cryptocurrency in the world, Ether (around $819 billion), generated in the same period. Numerous analysts estimate that this trend peaked when U.S. President Donald Trump launched his own memecoin on Solana, which reached a total market value of an incredible $25 billion on its first day and became the sixth most traded cryptocurrency in the world, which was an unprecedented achievement at that time – they conclude from Electrocoin.
ACTIVITIES OF 17 VASPs What Each Domestic Digital Asset Service Provider Does
1. Adria Digital Exchange – custody and management of virtual assets, management of a platform for trading virtual assets, execution of orders for virtual assets, receipt and transfer of orders for virtual assets on behalf of third parties.
2. BD Innovation Hub – custody and management of virtual assets, exchange of virtual assets for other virtual assets, execution of orders for virtual assets, services for the execution of offers or sales of virtual assets.
3. Bitblock – exchange of virtual assets for fiat currency that is legal tender, consulting on virtual assets.
4. Blok Be – custody and management of virtual assets, management of a platform for trading virtual assets, exchange of virtual assets for fiat currency that is legal tender, exchange of virtual assets for other virtual assets, consulting on virtual assets.
5. Cana Pay – exchange of virtual assets for fiat currency that is legal tender.
6. CREDOS – execution of orders for virtual assets, services for the execution of offers or sales of virtual assets, receipt and transfer of orders for virtual assets on behalf of third parties.
7. Digital Assets – custody and management of virtual assets, management of a platform for trading virtual assets, exchange of virtual assets for fiat currency that is legal tender, exchange of virtual assets for other virtual assets, execution of orders for virtual assets, services for the execution of offers or sales of virtual assets, consulting on virtual assets.
8. DUPLICO – exchange of virtual assets for fiat currency that is legal tender, exchange of virtual assets for other virtual assets.
9. Electrocoin – custody and management of virtual assets, management of a platform for trading virtual assets, exchange of virtual assets for fiat currency that is legal tender, exchange of virtual assets for other virtual assets, execution of orders for virtual assets, services for the execution of offers or sales of virtual assets, receipt and transfer of orders for virtual assets on behalf of third parties, consulting on virtual assets.
10. FiatBit Technologies – exchange of virtual assets for fiat currency that is legal tender.
11. Fintrax – custody and management of virtual assets, exchange of virtual assets for fiat currency that is legal tender, exchange of virtual assets for other virtual assets, execution of orders for virtual assets, receipt and transfer of orders for virtual assets on behalf of third parties.
12. HODL Store – custody and management of virtual assets, management of a platform for trading virtual assets, exchange of virtual assets for fiat currency that is legal tender, exchange of virtual assets for other virtual assets, execution of orders for virtual assets, services for the execution of offers or sales of virtual assets, receipt and transfer of orders for virtual assets on behalf of third parties, consulting on virtual assets.
13. IN KAPITAL – exchange of virtual assets for fiat currency that is legal tender, exchange of virtual assets for other virtual assets.
14. M obrada – execution of orders for virtual assets, receipt and transfer of orders for virtual assets on behalf of third parties.
15. Marinix275 – custody and management of virtual assets, exchange of virtual assets for fiat currency that is legal tender, exchange of virtual assets for other virtual assets, execution of orders for virtual assets, services for the execution of offers or sales of virtual assets.
16. Moneysail – custody and management of virtual assets, exchange of virtual assets for fiat currency that is legal tender.
17. White Tech – custody and management of virtual assets, management of a platform for trading virtual assets, exchange of virtual assets for fiat currency that is legal tender, exchange of virtual assets for other virtual assets, execution of orders for virtual assets, services for the execution of offers or sales of virtual assets, receipt and transfer of orders for virtual assets on behalf of third parties, consulting on virtual assets. (Source: Hanfa)
