MiCA Survivors Club: Fewer Tables, Pricier Chairs 💶

Crypto companies that secured licenses under the European Union's Markets in Crypto-Assets Regulation (MiCA) may still exit the bloc as compliance costs outpace revenue, according to Giovanni Cunti, CEO of Gate Europe. Speaking on Cointelegraph's Chain Reaction on Monday, Cunti said some authorized firms are unlikely to absorb the long-term cost and resources needed to remain operational under the framework. "I think there are going to be quite a few more of the ones that acquire MiCA license that will not be capable to sustain the cost and the resources that are needed to carry on this business in the long term," Cunti said.

Cunti also cautioned that MiCA's stricter requirements could push startups toward lighter-touch jurisdictions, potentially redirecting innovation away from Europe even as investor protections inside the bloc strengthen. "We may need to be prepared that some projects, possibly some important projects, may be looking at other jurisdictions with different guidelines," he said. Binance, the world's largest crypto exchange by trading volume, was unable to secure a MiCA license before the framework's July 1 transition deadline, prompting several platforms to restrict or withdraw services in parts of Europe while licensed firms began operating under the new regime.

The European Securities and Markets Authority on Friday added 14 crypto-asset service providers (CASPs) to its MiCA register, bringing the total to 294 after the regulator's first update following the July 1 transition. That figure followed the addition of 37 firms in the initial batch. Despite the slowdown in new authorizations, Cunti framed the consolidating market as an opening for remaining providers. "There was a market with thousands of operators, and now there is a market with only hundreds," Cunti said. "So definitely there is a big opportunity for all of us. There is an ongoing migration because customers do not want to lose access to this market."