The European Union's Markets in Crypto-Assets regulation came into full effect on June 30, requiring crypto firms to obtain a license or stop serving customers in the bloc.
Thousands of cryptocurrency service providers were legally obligated to cease operations for EU clients as of midnight on June 30. Millions of users began seeking MiCA-approved platforms.
Industry executives welcomed the single regulatory framework but raised concerns about high compliance costs. These costs could reduce the number of licensed providers from around 3,000 to 300 or 400.
Joseph Borg, a Maltese lawyer, said regulation is necessary but warned that enforcement may favor larger firms. Alex Fazel of SwissBorg noted that transparency requirements make licensing difficult for startups with limited capital.
Lin Han of Gate Group stressed the need for a level playing field. He questioned whether regulators can stop unlicensed offshore platforms from serving European users.
