Bitget’s Regulatory Milestone in Poland
On May 23, 2023, cryptocurrency exchange Bitget announced its successful registration as a Virtual Asset Service Provider (VASP) in Poland. This regulatory green light serves as a robust foundation for Bitget, allowing it to operate seamlessly in the Polish market. Just last month, they secured a similar license in Lithuania, further expanding their influence within the Baltic region.
The Vision Behind the License
Gracy Chen, Bitget’s managing director, articulated the company’s view on the necessity of regulation in the aspiring world of cryptocurrencies. “We understand that regulation is the future of the cryptocurrency industry if mainstream adoption is to be achieved,” said Chen, highlighting the firm’s commitment to making cryptocurrency a more mainstream option in Europe.
Team Expansion Amid Growth
Bitget is riding the wave of growth not only in the regulatory realm but also internally. As of Q1 2023, the company increased its workforce from 1,000 to 1,300, with about 300 positions still up for grabs across sectors like research, compliance, and customer support. This expansion underscores the exchange’s ambition to scale its operations effectively.
Bitcoin’s Price Recovery Boosts User Protection Fund
The recent recovery in Bitcoin (BTC) prices has positively impacted Bitget’s User Protection Fund, which gained a whopping $80 million in book value, now totaling $380 million. Additionally, the exchange saw a staggering 27% quarter-over-quarter increase in futures trading volume, hitting $658 billion—showcasing the increasing interest in cryptocurrency trading among users.
Growing User Base and Market Reach
With 8 million registered users spread across more than 100 countries, Bitget is certainly making waves in the crypto exchange world. Their growth trajectory seems promising—building upon the regulatory groundwork laid by recent approvals.
Context of Regulatory Support in Poland
In the wake of Bitget’s success, Poland’s crypto landscape continues to evolve. Earlier this year, Binance also registered as a VASP after Poland updated its regulations to accommodate blockchain enterprises. Although traditional Polish banks are reluctant to collaborate with cryptocurrency companies, crypto-friendly institutions primarily in Lithuania are stepping in to serve these emerging businesses.
Tax Regulations: The Fine Print
Polish legislation classifies activities related to cryptocurrencies as VAT-exempt. However, profits from these activities are taxed at a standard rate of 19%. It’s crucial for VASP license holders to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to ensure a secure trading environment.
“Traditional Polish banks do not wish to work with crypto companies, thus mostly Lithuanian based financial institutions whom are crypto-friendly can be used.” – Maxcorp
