Many fintech start-ups and established companies are now looking for a new home throughout Europe because Brexit. Bulgaria is preparing to be the top destination for many of them, including crypto, blockchain and licensed electronic money institutions, as proven by leading companies like SM Digital Holding and Wallex.
Meet the Next Blockchain Industry Boost
Bulgaria is well known for having a good track record with the fintech ecosystem, and for being a very competitive destination for money-licensed organizations because of its supportive regulations and good outlook in Europe. The country is soon expected to bypass Lithuania as the largest jurisdiction following the UK alone. Lithuania is vulnerable to crypto companies but also goes down in appeal because of the risk of European banks rejecting transactions from the country.
One of the main benefits of Bulgaria to the industry is that it acts as a ‘pipeline’ for money licensed organizations. Bulgaria has a licensing structure unlike UK FCA licenses, instead it has about ten cash licenses and all other licenses are passported. A passport license is when a company obtains a license from one European regulator and other countries on the continent recognize it and allow the company to operate within their local markets.
An example of the country’s appeal is that Simone Mazzuca, Director of Wallex, based in Bulgaria – SM Digital Holding. It is a company that provides digital financial and legal advisory services to multinationals. SM Digital Holding is also the company that supports Wallex Trust and Wallex Custody. Wallex is an international group providing asset protection services, including custody service, unlimited banking solutions, OTC services, exchange platform, property management, crowd funding operations and international licenses.
Bulgaria Offers Many More Benefits
Beyond its competitive licensing structure Bulgaria has much more to offer crypto and fintech companies. The country is strategically located close to many markets, has a very talented European labor fund and is also very affordable for companies and workers. Despite being a member of the EU, Bulgaria is still outside the Schengen Area and so rental prices, wages, food and much more are on a different scale than other European countries – giving companies a bigger bang for their boat.
For these reasons the World Bank opened its shared services office in Sofia, Bulgaria a year ago to provide corporate and technology support to its business operations worldwide. The venue was selected following a competitive search based on a wide range of criteria including cost effectiveness, quality of information technology (IT) infrastructure, and the local talent pool. These days there are even hopes in the city about the possibility of the World Bank opening a European headquarters there.
“I am very happy with the establishment of the shared services center in Sofia. It further strengthens Bulgaria’s strong partnership with the World Bank and recognizes the many benefits Bulgaria has to offer ”- Koen Davidse, World Bank Executive Director for Bulgaria
For many in the crypto world Bulgaria is also considered a symbol for being the largest bitcoin holder in the world, second only to Satoshi Nakamoto himself. This is because it was announced in May 2017 that the authorities in the country had seized over 213,000 BTC, worth more than $ 4 billion today. Bulgarian officials later denied the announcement, but the myth persists.
If you want to give your company great benefits from all the many benefits Bulgaria has to offer, including its welcoming EMI licensing structure, reach out to SM Digital Capture.
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