Zebec Network, a leading Web3 payments and streaming protocol, is making a bold move to get ahead of Europe’s toughening crypto regulations. The company has acquired Gatenox, a digital identity and compliance platform, in an all-cash deal designed to bring Know Your Customer (KYC), Know Your Business (KYB), and Anti-Money Laundering (AML) tools directly into Zebec’s payment stack. The acquisition, announced June 5, comes as the EU’s Markets in Crypto-Assets Regulation (MiCA) sets a 2026 deadline for sweeping new identity and reporting standards across the industry. Why a Streaming Payments Protocol Buys a KYC Firm For Zebec, the Gatenox buyout is about more than checking a regulatory box. “Regulation is no longer optional and is now infrastructure,” said Neal Padhye, Zebec’s head of M&A. “With Gatenox, we’re embedding compliance into the foundation of programmable finance, making Zebec faster, safer, and ready for institutional scale”. By bringing compliance in-house, Zebec aims to phase out reliance on third-party providers like Sumsub, cut costs, and control sensitive user data as it expands into the EU and UK. Gatenox’s founders, who previously built Eastern Europe’s largest mobile payment platform BLIK and the compliance startup Coinfirm, will join Zebec to architect its compliance core. Their team brings experience from major banks like UBS, AIG, and RBS. “We’re not just plugging in a tool — we’re building the regulatory muscle needed for Web3 to go mainstream in Europe,” a Zebec spokesperson told Cointelegraph. MiCA’s Stringent Identity Rules and the DeFi Domino Effect MiCA, which takes full effect in 2026, will require crypto asset service providers to verify user and business identities, monitor transactions for suspicious activity, and report to EU authorities. The rules are strict: non-compliance could mean losing access to the EU’s 450-million-person market. The UK’s Financial Conduct Authority (FCA) is also tightening standards, making compliance a must-have for any protocol with global ambitions. Zebec’s move is part of a broader trend. As MiCA’s deadline approaches, more DeFi and Web3 firms are expected to acquire or partner with compliance specialists to avoid being shut out of Europe. “We’re going to see a wave of integrations and acquisitions as protocols race to meet MiCA’s standards,” said former FCA official Mark Roberts. “The days of anonymous DeFi are numbered if you want to scale in regulated markets.” Industry analysts note that Zebec’s acquisition follows its earlier buyout of Science Card, a UK fintech platform, signaling a shift toward building a full-stack, compliance-ready financial infrastructure. With $35 million in funding from Circle, Coinbase, Solana Ventures, and others, Zebec is betting that regulatory clarity will attract institutional capital and mainstream adoption. Will Others Follow? Market Signals and Community Reaction The acquisition is already rippling through the DeFi sector. On X, @Web3Compliance wrote, “Zebec just set the standard for MiCA readiness. Expect a compliance arms race before 2026.” Others, like @DeFiBuilderEU, see it as a sign that “serious protocols are getting ready for the big leagues — no more hiding from KYC.” Meanwhile, Santiment data shows a spike in Zebec’s native token trading volume following the announcement, as investors bet on the protocol’s regulatory edge.
