More MiCA-licensed crypto firms may exit EU market: Gate Europe CEOGate Europe’s Giovanni Cunti says some MiCA-licensed crypto firms may struggle to sustain compliance costs as Europe enters its new regulatory era.

Giovanni Cunti, CEO of Gate Europe, has indicated that despite some crypto companies obtaining licenses under the European Union's Markets in Crypto-Assets Regulation (MiCA), several may still exit the EU market due to the high compliance costs associated with the new regulatory framework. Cunti expressed concern that these firms might not be able to sustain the financial and resource burdens necessary to operate long-term under MiCA, which completed its 18-month transition period on July 1, requiring crypto service providers to obtain authorization or cease regulated activities in the EU.

MiCA represents the EU’s comprehensive regulatory structure for crypto assets, aimed at strengthening investor protections but also imposing stricter operational standards. Following the transition deadline, some exchanges restricted or withdrew services in parts of Europe. Notably, Binance, the world’s largest crypto exchange by trading volume, did not secure a MiCA license before the deadline, illustrating the regulatory challenges faced by major players.

Cunti also highlighted concerns that the rigid regulatory environment in Europe might push startups and blockchain projects to seek jurisdictions with lighter compliance requirements. While the framework aims to enhance market oversight, it may limit innovation by creating barriers that encourage projects to launch elsewhere. This could potentially result in a migration of significant crypto ventures outside the EU.

Despite these challenges, the number of officially authorized crypto-asset service providers under MiCA continues to grow, though at a slower rate. The European Securities and Markets Authority (ESMA) recently added 14 new licensed firms, increasing the total to 294. Cunti acknowledged that the regulatory tightening has reduced the market from thousands of operators to a few hundred, but he views this consolidation as creating market opportunities for the remaining licensed providers, as customers continue seeking access within the regulatory framework.