Europe's Crypto Firms Face Squeeze as MiCA Transition Period End Looms
EU crypto firms face a major shakeout as MiCA’s transition period ends July 1, requiring companies serving EU users to hold a single license that passports across all member states. Supporters say the regime brings clearer rules, trust, and long-term growth. In practice, only about 200 firms have full authorization, as the process is heavy on governance, AML, capital, and resilience requirements and some countries have barely begun issuing licenses. MiCA is likely to strengthen the market while also driving consolidation, reducing liquidity and possibly pushing activity elsewhere. Binance may be denied an EU license, highlighting the pressure on large players. Industry voices expect more acquisitions and a shift in venture funding toward firms that treat compliance as part of the product. Regulators are also starting to assess how DeFi fits within MiCA, with Malta exploring whether decentralization should be judged on a spectrum.
