How Singaporean Startup Paymonade Survived Europe's Crypto Shakeout with New Regulations

Paymonade Emerges Strong Amid Europe's Crypto Regulation Overhaul

In the changing landscape of the European cryptocurrency market, where approximately 90% of firms have failed to meet the new regulatory requirements, Singaporean-founded Paymonade stands out as a beacon of resilience. The company's journey from inception to becoming one of the few licensed operators in Europe is a testament to effective leadership and strategic foresight.

As the European Union's Markets in Crypto-Assets Regulation (MiCA) took effect, the number of registered crypto firms dwindled dramatically. Initially boasting over 3,000 participants, only 280 have successfully attained full authorization across the European Economic Area (EEA). This consolidation represents one of the most significant regulatory transformations witnessed in the financial sector in recent times. Despite these challenges, Paymonade—trading as Damoon Technology (Europe) AG—has positioned itself as a leader in the regulated crypto space by securing a MiCA license from Liechtenstein's Financial Market Authority.

Founded by Calvin Cheng—a former Singapore Parliament member and seasoned entrepreneur—Paymonade has created a robust infrastructure for fiat-to-crypto and crypto-to-fiat transactions. The company serves as a crucial bridge for payment providers, fintech companies, and cryptocurrency exchanges that require compliant euro and other fiat currency settlement options. With an impressive annual transaction volume run-rate of approximately $1.8 billion, Paymonade is ranked among the leading on-ramp and off-ramp infrastructure providers operating under the new MiCA regime.

Cheng's background in highly regulated financial technology environments has been instrumental in Paymonade's success. He has previously been involved with a Swiss digital asset firm recognized by FINMA, Switzerland's financial regulatory authority, and has held significant positions in the fintech sector, including as a founding shareholder of Longbridge Securities. His leadership has distinctly set Paymonade apart in a market where regulatory compliance is becoming increasingly essential.

"The era of lightly regulated crypto is ending," Cheng emphasized. He attributes the firm's acquisition of the MiCA license to the institutional strength they have fostered over the years. As many peers struggle to remain afloat, Paymonade's vision is clear: to evolve as a regulated powerhouse in digital assets, mixing innovation with regulatory integrity. This mission positions them as a potential leader in developing the next generation of digital finance solutions.

The success of Paymonade also highlights a growing trend in the industry: banks, fintechs, and exchanges prefer to partner with a single regulated provider capable of serving their needs across the entirety of Europe rather than negotiating licenses in each market separately. Paymonade has responded actively to this demand and is currently engaging in discussions with various exchanges, fintech firms, and banks seeking compliant infrastructures to streamline their operations.

As Paymonade looks to the future, the firm aims to double its European workforce within the next year. Additionally, it targets increasing its annualized transaction volume to 6 billion Swiss Francs by mid-2027. This ambitious plan reflects their commitment to not only surviving the ongoing regulatory evolution but thriving within it.

The journey of Paymonade encapsulates the shifting dynamics of the cryptocurrency industry in Europe—a field that demands compliance and innovation side by side. In the aftermath of the MiCA implementation, it is evident that the days ahead will necessitate firms that are agile, regulatory conscious, and above all, innovative. Paymonade is determined to exemplify these traits, leading the way as the industry matures.