The new MiCA regulation comes into effect and is impacting the European cryptocurrency market. Many companies are considering relocating to more favorable jurisdictions.
Introduction to MiCA and its Implications
According to MiCA standards aimed at harmonizing cryptocurrency regulation across EU member states, the crypto market is likely to face significant changes. The regulation will take effect on December 31, 2024, replacing the fragmented approach with a unified set of rules for all 27 member countries.
Status of Crypto Firms in the EU and Their Authorization
As of April 15, only 17 crypto businesses had received authorization under MiCA across seven EU countries. Another 15 entities were listed as non-compliant, a much smaller number compared to over 3,000 registered firms, with only 1,100 to 1,300 being actively operational.
Future Prospects for the Crypto Market in Europe
In the future, many firms may consolidate or exit Europe, seeking better business conditions. Early quarters of 2025 already show signs of a smaller, more regulated market, which indicates a shift in the distribution of crypto firms across countries.
Upcoming changes under MiCA present both challenges and opportunities for crypto firms in Europe, forcing them to adapt to new conditions.
