MiCA has reshaped Europe's cryptocurrency industry. As of January 2025, 53 crypto firms have secured MiCA licences (39 Crypto-Asset Service Providers and 14 stablecoin issuers) while an estimated 75% of the 3,167 previously registered crypto businesses may lose their operating rights if they fail to obtain authorisation.
Major exchanges like Coinbase, Kraken, and OKX have established regulated European operations, while Tether's USDT has been delisted across the continent.
What MiCA Requires
MiCA entered into force on June 29, 2023. Implementation occurred in two phases: stablecoin rules took effect on June 30, 2024, while full CASP requirements became mandatory on December 30, 2024.
The regulation establishes ten categories of crypto-asset services, including custody, trading platform operation, exchange services, advisory, and portfolio management.
Key requirements include:
- Capital requirements ranging from €50,000 for advisory services to €150,000 for custody operations
- A registered office in the EU with at least one director resident in the bloc
- Robust AML/KYC systems
- Implementation of the EU's travel rule requiring identification information for all crypto transfers
- Segregation of client assets from company holdings
Where Licences Are Being Granted
- Germany: roughly one quarter of all CASP licences
- Netherlands: about one fifth
- France: around one tenth
- Malta, Cyprus and Spain: smaller but growing clusters
- Italy: still no CASP licences of its own, relying instead on passported firms
Processing times vary significantly. Lithuania delivers decisions within 45 to 90 days, while Germany and France typically require six months or longer for complex applications. As of mid-2025, over 150 applications remain pending.
Malta and Supervisory Concerns
Malta has positioned itself as a fast-moving MiCA hub and has granted several early licences to big names such as Crypto.com, OKX and Gemini.
However, a review by the European Securities and Markets Authority (ESMA) criticised the Maltese process in at least one case, saying certain risks were not fully assessed before a licence was issued. That in turn helped trigger a wider push by France, Italy and Austria for more direct ESMA supervision of large cross-border crypto firms and tighter rules on regulatory shopping.
Major Exchanges Secure European Footholds
Crypto.com became the first major global CASP to receive full MiCA authorisation on January 27, 2025, choosing Malta for its speed and existing Virtual Financial Assets Act framework. OKX followed days later through the same jurisdiction.
Coinbase selected Luxembourg as its EU headquarters, citing "clearer blockchain laws" after the jurisdiction passed four blockchain-related statutes at the national level.
Kraken pursued authorisation through Ireland's Central Bank, becoming the first major global platform to receive CBI authorisation.
Traditional financial institutions are also entering. Standard Chartered launched digital asset custody services from Luxembourg in January 2025, initially covering Bitcoin and Ethereum for institutional clients. Société Générale-FORGE issued MiCA-compliant euro and dollar stablecoins, the first bank-issued tokens under the new framework.
Stablecoins: Winners and Holdouts
The stablecoin provisions under MiCA have generated the most industry attention.
MiCA treats stablecoins as either:
- Asset-referenced tokens (ARTs) that track a basket of assets, or
- Electronic money tokens (EMTs) that reference a single official currency such as the euro or US dollar.
Issuers of these tokens must:
- Maintain 1:1 reserves in high-quality, liquid assets
- Keep at least 60% of significant stablecoin reserves with European banks
- Publish regular, audited reserve reports
- Offer redemption at par and meet strict governance and risk management standards
Algorithmic stablecoins are effectively pushed out of the retail market because MiCA does not allow them to be marketed or used widely as a store of value. (See UST)
Circle and Bank-Issued Tokens
Some issuers have leaned into the new regime:
- Circle obtained a French e-money institution licence in 2024 and has positioned USDC and EURC as MiCA-compliant EMTs.
- Banks like SG-FORGE and a growing number of European consortia are launching their own euro stablecoins that sit clearly within MiCA and payments law.
This gives institutions comfortable options for on-chain settlement, but it also shifts power toward regulated financial groups rather than independent crypto issuers.
Tether Dominance and Not Bowing to the EU Overlords
CEO Paolo Ardoino has said publicly that the firm will not seek a MiCA licence, largely because of the requirement to keep at least 60% of reserves in European banks. He argues that this is "very dangerous for stablecoins" and could create systemic risk if banks fail while holding a large share of stablecoin backing assets. We saw a glimpse of this with Circle when SVB failed and USDC traded at a -20% discount for an entire weekend.
Tether consequently:
- Closed its euro stablecoin EURT for European customers
- Accepted that USDT would be delisted from MiCA-regulated exchanges in the European Economic Area
Major platforms including Coinbase Europe, Crypto.com, Kraken, OKX and Binance (for EEA users) have either already removed USDT pairs or announced plans to do so.
Globally, USDT supply and trading volumes have continued to grow, because MiCA only applies within the EU. On European venues, flows are gradually shifting toward USDC, bank-issued euro tokens and other MiCA-compliant stablecoins.
For traders, this means:
- Fewer USDT pairs on EU-regulated exchanges
- More reliance on EMTs and possibly on offshore venues for those who want to keep using USDT
Compliance Costs and Market Consolidation
MiCA's impact extends beyond licensing to market structure. Compliance costs have increased roughly sixfold, from approximately €10,000 pre-MiCA to €60,000 or more under the new regime. 35% of crypto firms report annual compliance expenditures exceeding $500,000.
The result is consolidation. Approximately 18% of European crypto platforms have either shut down or exited by 2025. Smaller firms face particular pressure, with industry observers noting MiCA "makes it nearly impossible for small startups to survive or scale."
What This Means
MiCA has achieved regulatory clarity for crypto in Europe, but at a cost. The framework favours large, well-capitalised firms that can absorb compliance expenses and navigate lengthy authorisation processes. Smaller operators and certain product categories (algorithmic stablecoins, for example) have been pushed out.
For firms that secured licences, the benefits are tangible: a single authorisation now provides access to customers across all 27 EU member states. For those that chose not to comply, Europe's market of 450 million potential users is now closed.
For smaller firms, this creates a considerable headache for GTM and compliance, whereas Tether is too big to be strangled by overregulation.
The July 2026 grandfathering deadline will be the next major milestone. Firms still operating under transitional provisions will need to secure full authorisation or exit.