Europe's new crypto rulebook (MiCa) took full effect Wednesday, leaving just 244 of more than 3,000 previously registered firms authorized to keep serving European Union clients.
Key Points
- Just 244 of the more than 3,000 firms once registered under national rules have secured authorization under Europe's new Markets in Crypto-Assets framework.
- Binance enters the regime unlicensed after withdrawing its Greek application in June, though the exchange says it intends to reapply.
- Executives are split on what comes next, from market consolidation to unresolved questions over stablecoin oversight.
MiCA Deadline Arrives
The Markets in Crypto-Assets Regulation, known as MiCA, closed its final transition window this week, ending 18 months of overlapping national licensing rules across the European Union.
Just a fraction of the roughly 3,000 firms that once operated under those old regimes have secured full authorization, according to the European Securities and Markets Authority's interim register. Germany led the continent with 57 approvals, followed by France and the Netherlands with 26 each, while Greece, Hungary and Poland had none.
Binance, the world's largest crypto exchange, entered the deadline without a license after withdrawing its Greek application in June. Founder Changpeng Zhao said the filing was fully compliant and near approval before unspecified political forces intervened, calling the outcome a loss for both Binance and Europe.
The exchange says it plans to reapply in another member state.
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Executives React
Kraken's head of policy for EMEA, Beata Sivak, said authorization means a regulator has reviewed how a firm is run and how it safeguards client assets, holding it to EU conduct rules. Coinbase, OKX and Crypto.com also secured licenses and remain free to operate across the bloc. Field Digital chief executive Joe Buttram predicted fragmentation as capital, users and trading activity shift toward compliant platforms.
Not everyone views the shakeout the same way.
Ari10 chief executive Mateusz Kara argued the bloc has favored Western nations, noting Poland has roughly 2,000 unlicensed crypto entities and only his firm holds a license. Parfin chief executive Marcos Viriato expects a wave of mergers as companies that missed the deadline for timing reasons rather than poor business practices look for buyers.
Ripple, issuer of the RLUSD (rlusd) stablecoin, said the treatment of multi-jurisdictional stablecoin issuance remains unclear in practice, leaving some European businesses at a disadvantage relative to firms operating in other jurisdictions.
The European Commission opened a review of the framework in May to determine whether amendments are needed. Users of unlicensed platforms are expected to migrate funds toward authorized exchanges or move assets into self-custody.
MiCA has advanced in stages since entering into force in 2023, with stablecoin rules taking hold in mid-2024 and full licensing requirements for exchanges arriving that December. The rules replaced a patchwork of national regimes that had governed crypto firms differently across each of the bloc's 27 countries for years.
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