Zebec Acquires Gatenox to Integrate Native KYC and AML Compliance for European Market Entry
Financial infrastructure company Zebec Network has acquired compliance platform Gatenox to integrate native Know Your Customer (KYC), Know Your Business (KYB), and Anti-Money Laundering (AML) tools directly into its Web3 payment stack. According to Cointelegraph, Neal Padhye, head of mergers and acquisitions at Zebec, stated that regulation is no longer optional and is now infrastructure. The all-cash transaction will enable Zebec to pursue regulatory registration under the European Union's Markets in Crypto-Assets Regulation (MiCA) and with the United Kingdom's Financial Conduct Authority (FCA) later in 2025.
Strategic Move to Phase Out Third-Party Compliance Providers
The acquisition allows Zebec to eliminate its dependence on external compliance providers like Sumsub. Bitcoin Ethereum News reports that Gatenox's product offering directly competes with Sumsub, and Zebec will migrate away from the third-party provider following this acquisition. This strategic shift brings sensitive compliance operations in-house, providing greater control over customer data and reducing operational costs.
Gatenox's founders previously built BLIK, Eastern Europe's largest mobile payment platform, and compliance startup Coinfirm. Both founders will join Zebec to architect its compliance core, bringing experience from major financial institutions including Union Bank of Switzerland, American International Group, and Royal Bank of Scotland. Currently, Gatenox is not registered with any financial regulatory authorities, though the team possesses extensive experience at regulated financial institutions.
MiCA Compliance Requirements Drive Industry Transformation
The European Union's MiCA regulation entered full force on December 30, 2024, creating sweeping requirements for crypto-asset service providers operating within the 27-member bloc. Legal Nodes explains that starting January 2025, Crypto Asset Service Providers (CASPs) must begin applying for licenses to operate within the EU. The regulation mandates comprehensive KYC and AML compliance, transaction monitoring systems, and regular reporting to regulatory authorities.
ESMA states that by July 2026, all CASPs must achieve comprehensive compliance with MiCA requirements. Non-compliance carries severe penalties, with fines potentially reaching 12.5% of annual turnover. The regulation covers crypto-assets not currently regulated by existing financial services legislation, establishing uniform market rules across the EU's 450-million-person market.
Growing Compliance Trends Across the Cryptocurrency Industry
Zebec's acquisition reflects broader industry trends toward enhanced compliance infrastructure. Silent Eight research indicates that by the end of 2025, all major crypto platforms will likely implement stricter KYC/AML controls, including transaction monitoring and suspicious activity reporting. The report notes that illicit cryptocurrency transactions surged by over 80% in the previous year, intensifying regulatory pressure.
The FCA has also tightened standards for UK-based cryptocurrency businesses. Grant Thornton notes that the FCA's roadmap positions the UK as a global leader in digital assets regulation, with the new regulatory regime expected to go live toward the end of 2026. UK firms already require FCA registration under Money Laundering Regulations, with nearly three-quarters of applications either refused or withdrawn due to inadequate compliance measures.
Market Implications and Institutional Adoption Acceleration
Zebec Network has secured $35 million in funding from prominent investors including Circle, Coinbase, Solana Ventures, Breyer Capital, Republic, and Lightspeed Venture Partners. The company's native token ZBCN trades actively on exchanges including KuCoin, Bybit, OKX, and Crypto.com. Regulated entity Uphold holds over $35 million worth of ZBCN tokens, demonstrating institutional confidence in the platform's compliance approach.
This acquisition follows Zebec's earlier purchase of Science Card, a UK-based fintech platform serving over 50,000 users. The Science Card acquisition provided Zebec with physical and digital card capabilities across more than 210 countries, while the Gatenox deal focuses specifically on regulatory infrastructure.
Industry analysts expect similar acquisitions as protocols prepare for 2026 compliance deadlines. The move toward embedded compliance solutions represents a shift from the traditional "move fast and break things" approach to a more mature, institutionally ready cryptocurrency infrastructure. Financial institutions increasingly require robust compliance frameworks before engaging with cryptocurrency platforms, making acquisitions like Zebec's essential for mainstream adoption.
Zebec's proactive approach to regulatory compliance positions the company for expansion into heavily regulated markets. With MiCA's comprehensive framework now in effect and the FCA's roadmap advancing, companies that invest early in compliance infrastructure gain competitive advantages in attracting institutional capital and accessing traditional financial partnerships.
Related Reading on DAO Times
For readers interested in understanding the broader landscape of decentralized finance tooling and governance infrastructure, DAO Times provides a comprehensive guide to DAO tools for 2025. This resource covers the complete ecosystem of tools for decentralized autonomous organizations, including governance platforms, treasury management solutions, compliance tools, and emerging AI integrations. The guide examines how regulatory frameworks like MiCA are shaping the development of Web3 infrastructure and explores the intersection between traditional compliance requirements and decentralized governance systems.
