Crypto companies already licensed under the European Union’s Markets in Crypto-Assets Regulation (MiCA) could still abandon the bloc as compliance costs mount, according to Giovanni Cunti, CEO of Gate Europe.
Speaking to Cointelegraph’s Chain Reaction on July 21, Cunti said the burden of operating under MiCA’s stricter requirements may force even authorized firms to relocate. “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.
MiCA’s 18-month transition period ended on July 1, requiring crypto firms serving EU customers to operate under authorization or cease offering regulated services. The deadline prompted several exchanges to restrict or withdraw services in parts of Europe. Binance was not able to secure a MiCA license before the deadline.
The regulatory tightening has reshaped the market structure. “There was a market with thousands of operators, and now there is a market with only hundreds,” Cunti noted.
Register Growth Continues
The European Securities and Markets Authority (ESMA) added 14 crypto-asset service providers to its register on Friday, bringing the total to 294 authorized firms. This followed an earlier batch of 37 firms added in ESMA’s first update after the July 1 transition deadline.
Despite the licensing framework’s stricter investor protections, Cunti warned that some firms may seek alternatives abroad. “We may need to be prepared that some projects, possibly some important projects, may be looking at other jurisdictions with different guidelines,” he said.
Cunti emphasized that the licensed market still presents opportunity for compliant operators. “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,” he said.
MiCA’s regulatory requirements have strengthened investor protections but leave less room for innovation than jurisdictions with lighter rules. The number of companies authorized under MiCA continues to grow, albeit at a slower pace than the pre-regulation market.
