Cryptocurrency Exchanges and EU Lobbying Efforts in 2024
In 2024, cryptocurrency exchanges made significant financial commitments to influence the European Union’s regulatory landscape, with expenditures soaring for many firms. Data from transparency organizations like Corporate Europe Observatory and LobbyControl highlights the active involvement of major exchanges, with several raising their lobbying budgets by a striking 25% compared to previous years.
Leading Expenditures
Leading the spending was Payward, the parent company of Kraken, which allocated between $323,000 and $430,000 (€299,999–€399,999) on lobbying efforts. This marks an increase of approximately $108,000 (€100,000) from their 2023 figures, with the firm employing the equivalent of 2.75 full-time lobbyists.
Following closely was Coinbase, which reported a lobbying expenditure between $216,000 and $323,000 (€199,999–€299,999), also up by $108,000 (€100,000) year on year, and staffed by 0.7 full-time lobbyists.
Other Notable Players
LobbyControl measures lobbying staff by considering the portion of time professional lobbyists spend on various clients, which often results in part-time equivalents based on hours worked. Additionally, Bitpanda maintained its lobbying budget at between $54,000 and $108,000 (€50,000–€99,999) and employed two full-time lobbyists. Binance France SAS, a subsidiary of Binance, mirrored Bitpanda’s spending, also investing between $54,000 and $108,000 (€50,000–€99,999) with 0.4 full-time lobbyists.
It’s important to note that these figures reflect direct lobbying expenditures targeting EU institutions like the European Commission and do not account for other financial regulators or state-level government influences, suggesting that actual lobbying costs could be significantly higher. Notably, Revolut, while primarily a digital bank, also engages in cryptocurrency trading services and spent between $323,000 and $430,000 (€300,000–€399,999) in lobbying, backed by 1.4 full-time lobbyists.
Comparison with Larger Firms
Despite this considerable investment from the crypto sector, the overall totals pale compared to the lobbying endeavors of larger technology firms. Meta, for example, was the top spender with over $10.7 million (€10 million), highlighting the dominance of US technology giants in lobbying expenditures.
Upcoming Regulations
Amid all this activity, the European Union is on the cusp of implementing comprehensive regulations for cryptocurrency under the Markets in Crypto-Assets Regulation (MiCA), effective from December 30, 2024. Additionally, the EU’s Anti-Money Laundering Authority has alerted member states to assess potential financial crimes ahead of new regulations set to roll out from July 1, 2027. Legal experts suggest that some companies may attempt to navigate around MiCA constraints using complex ownership models or by selectively engaging with regulators to find more advantageous oversight.
