MiCA: European crypto regulator faces licensing chaos — less than 8% of companies have obtained permits
The European Markets in Crypto-Assets (MiCA) regulation was conceived as the world's first comprehensive law for digital assets, capable of creating a unified regulatory space for the 27 countries of the European Union. However, in practice, the ambitious project turned into a bureaucratic labyrinth. By the time the law came into force, less than 8% of crypto companies operating in Europe had obtained the necessary licenses, and the market faced fragmentation, political crises, and the departure of key players.
Preparation and Reality: Missed Deadlines
MiCA was introduced in stages over nearly three years to give businesses time to adapt. Rules for stablecoins came into effect on June 30, 2024, and the main regulations for crypto-asset service providers (CASPs) took effect on December 30, 2024. Theoretically, regulators were given 25 working days to review applications, but in practice, timelines stretched to 10–12 months. Each country set its own transitional period, allowing companies to operate without a license: from 18 months in the Czech Republic to five years in Lithuania. Instead of a single market, the European Union ended up with 27 fragmented jurisdictions.
According to ESMA, by May 2026, only about 17% of companies operating before MiCA came into force had obtained authorization. By the end of June, fewer than 250 active licenses were registered, although over 3,000 crypto companies were operating in Europe before the law was introduced. Five countries—Greece, Hungary, Poland, Portugal, and Romania—had not issued a single permit. Germany led the way, processing 23% of all applications.
The Polish Crisis: Politics vs. Business
The most telling example of chaos is Poland, where a political conflict blocked the launch of the national licensing system. President Karol Nawrocki vetoed the MiCA implementation law three times, citing the regulator's "excessive powers," including the right to freeze accounts. As a result, around 2,000 local virtual asset service providers cannot obtain permits. Companies are forced to relocate to neighboring countries, leading to additional costs and a loss of tax revenue for the state.
Binance and Tether: Giants on the Sidelines
The largest crypto exchange, Binance, applied for a license in Greece in January 2026 but faced tacit resistance from ESMA. The regulator recommended that national authorities reject applications due to anti-money laundering concerns. Ultimately, Binance withdrew its application a week before the deadline and, from July 1, restricted services for EU users.
An even more dramatic situation unfolded with Tether. The largest stablecoin issuer deliberately declined a MiCA license due to the requirement to hold at least 60% of reserves in European banks. Tether CEO Paolo Ardoino warned that this could lead to a collapse of USDT during mass redemptions. From July 1, USDT disappeared from regulated EU exchanges, making way for Circle's USDC, which obtained a license in France.
MiCA 2.0: An Attempt to Fix Mistakes
Regulators are aware of the problems. In May 2026, ESMA launched public consultations on revising MiCA, a process the industry has already dubbed MiCA 2.0. The main goal is to simplify administrative barriers and address the issue of stablecoins not denominated in euros. Simultaneously, ESMA is tightening oversight by conducting checks on custodial risks.
From my professional perspective: MiCA is a historic step, but its implementation has been too hasty and fragmented. European authorities risk driving innovation and capital to other regions if they do not acknowledge their mistakes and carry out a deep reform. The market needs time, but restoring investor confidence will take a long time.