European Institutions Seek Privacy, Auditability at PBW 2026

At Paris Blockchain Week 2026 in Paris, representatives from Arcanum Foundation and payments firm Mercuryo outlined the specific technical and legal features European institutional investors are asking for in crypto markets: on-chain privacy and composability, continuous auditable records, clearer rules under MiCA, and compliant connections between traditional finance and crypto infrastructure.

Institutional buyers at the conference asked for proof they can meet internal accountability and audit requirements before allocating capital. Michael Ivanov, chief executive of Arcanum Foundation, described a requirement for public, real-time verifiability similar to what retail markets demanded earlier. He said risk committees now expect a live, auditable trading record plus validated entity-level know-your-business checks as part of any allocation decision.

Arcanum Pulse began as a retail-facing product but underwent formal exchange approvals and full know-your-business verification to operate as an Official Broker on Bybit. The company presented the KYB process as evidence that both performance statistics and the entity behind them had been validated for institutional review.

Speakers noted algorithmic trading is becoming more common as liquidity in major pairs improves, but they identified gaps that still limit wider institutional use. Custody arrangements, counterparty transparency and jurisdiction-specific compliance were cited as areas that need strengthening. Ivanov pointed to operational concentration and the absence of stress tests for primary-exchange liquidity events as material operational risks.

To limit regulatory exposure, Arcanum operates through Bybit and restricts access in jurisdictions with unclear legal boundaries. Ivanov framed that choice as a product design decision to avoid carrying hidden regulatory risk for clients.

Mercuryo’s chief business officer, Arthur Firstov, attributed increased institutional interest in part to MiCA, which he said has reduced legal ambiguity and made it easier for digital token services to connect with traditional payment systems. He emphasized the commercial need for compliant connectivity services between banks and crypto platforms.

Firstov described common needs across retail users and small funds-reliable on- and off-ramps, secure custody, compliant payments and clear reporting-but noted differences in controls and accountability. Small funds require multi-step approvals, role-based permissions and detailed reconciliation and reporting to meet fiduciary obligations, while retail products prioritize simplicity and fewer exposed options.

On trading performance, Arcanum presented its algorithmic approach during October liquidations. The strategy avoids stop-losses, treats volatility as an entry signal and executed diversified buys into drawdowns. The firm reported that clients did not lose deposits during that event and that the month delivered an average return above 6% across the strategy’s accounts.

Both firms expect institutional adoption to depend on integrated infrastructure that links trading systems, distribution channels and on-chain capital flows. Arcanum plans to position Pulse as a foundational layer for exchanges, funds and white-label services rather than a standalone bot.

MiCA has entered into force in the EU and provides clearer legal rules for crypto services. Conference participants identified regulatory clarity combined with secure TradFi-crypto connectivity as factors that will affect whether institutional capital increases allocations to digital assets.