Zebec Network Drops 14.657% Amid Strategic Acquisition of Gatenox

Zebec Network's latest price was $0.004427, down 14.657% in the last 24 hours. This significant drop in price comes at a time when the company is making strategic moves to enhance its regulatory infrastructure and expand its operations into more regulated markets.

Zebec Network, a leading financial infrastructure company, has announced the strategic acquisition of Gatenox, a compliance and identity platform. This move is designed to bolster Zebec's in-house regulatory infrastructure, allowing the company to extend its operations into more regulated markets. By integrating essential compliance tools such as Know Your Customer (KYC), Know Your Business (KYB), and Anti-Money Laundering (AML) directly into its Web3 payment stack, Zebec aims to enhance the security and efficiency of its platform. Neal Padhye, head of mergers and acquisitions at Zebec, emphasized the strategic importance of incorporating regulatory elements into its financial infrastructure to facilitate institutional-scale business operations.

The acquisition was carried out as an all-cash transaction, though specific financial terms were not disclosed. Zebec plans to leverage Gatenox’s compliance technologies to seek regulatory approvals under the European Union’s Markets in Crypto-Assets Regulation (MiCA) and with the United Kingdom’s Financial Conduct Authority (FCA) later in the year. Although Gatenox is currently not registered with any financial authorities, its team brings valuable experience from regulated financial institutions. The founders of Gatenox have a track record of success, having previously launched BLIK, a major mobile payment platform in Eastern Europe, as well as Coinfirm. They will be joining Zebec to guide its compliance strategies going forward.

This acquisition is part of Zebec’s continuous expansion strategy, following an earlier acquisition of Science Card, which focuses on providing financial tools for students and researchers. The integration of Gatenox’s technology will enable Zebec to gradually phase out reliance on third-party compliance providers, such as Sumsub, in favor of proprietary solutions, thereby streamlining operations and enhancing compliance capabilities.

Since its establishment in 2021, Zebec Network has been successful in attracting substantial investment, securing a total of $35 million from prominent investors including Circle, Coinbase, Solana Ventures, Breyer Capital, Republic, and Lightspeed Venture Partners. As it continues its expansion and innovation strategies, Zebec remains committed to navigating the evolving regulatory environment effectively, ensuring readiness for decisive growth and institutional-scale operations.