AMSTERDAM, June 16, 2023 /PRNewswire/ — The Autoriteit Consument & Markt (the Dutch Authority for Consumers & Markets, ACM) has granted permission for users to switch from LiteBit to Bitvavo. The Rotterdam-based crypto currency broker LiteBit announced its decision to cease operations due to market developments, increased competition and regulatory pressure two weeks ago, as reported previously.
According to Bitvavo, this fits into a trend of consolidation within the market of crypto exchanges and brokers. Bitvavo expects that more, especially smaller parties, will throw in the towel in the coming months. Currently Bitvavo is the biggest and most valued crypto exchange in The Netherlands.
Strong brand
Mark Nuvelstijn, CEO of Bitvavo, is pleased with the arrival of LiteBit customers, stating: ‘LiteBit’s choice for Bitvavo is a confirmation of our reliable and user-friendly platform as well as the strong brand we have built over the past years. This is reflected in the consistent organic growth of our user base, not only in the Netherlands but also abroad. It is truly gratifying to add a significant number of users to our platform, in addition to our existing base of more than one million users.”
Consolidation in the world of crypto
Mark Nuvelstijn: ‘‘Our market is on the verge of a major consolidation wave. Firstly, there will be companies that simply cannot comply with the upcoming MiCa regulations and other legislation. Additionally, this regulatory framework leads to rising costs and the profitability of smaller-scale players will diminish. Finally, the market is currently experiencing relatively low trading volumes. As a result of these three factors, the market will rapidly consolidate, the most competitive players will emerge as the winners.’
Nuvelstijn adds: ‘The acquisition of LiteBit’s customer base aligns with Bitvavo’s growth strategy. In fact, we are in discussions with several players for a similar arrangement as the one we have made with LiteBit, just as we have welcomed customers from Bitzeb and Bitqist in the past.’
The crypto customer wins
Nuvelstijn states: “Supervision and enforcement will ensure that companies can demonstrate their compliance. MiCA, in particular, creates a level playing field for fair competition, with Europe taking the lead. Enforcement is crucial in this regard. If non-European entities can operate freely and disregard fines, it leads to unfair competition.
Bitvavo support regulations
‘As Bitvavo, we will continue to commit ourselves to supporting the development of appropriate regulations and providing a secure environment for our users. We look forward to further consolidation in the market and remain determined to be a competitive and customer-centric player.’
Bitvavo has been registered with DNB since 2020. We invest significantly to comply with laws and regulations. Of course, the introduction of MiCA means there is work to be done to ensure we meet all the new requirements. Fortunately, we have strong compliance, risk, and legal departments that ensure we are prepared and ready on time for the necessary preparations and implementation.
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