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MiCA compliance costs could push some EU-licensed firms to exit

The EU’s 18-month MiCA transition ended July 1, and Gate Europe’s CEO warned some licensed firms may not sustain the long-term staffing and resource costs.

Reported · Written up by our desk · Regulation

Gate Europe CEO Giovanni Cunti told Cointelegraph that some crypto companies licensed under the EU’s Markets in Crypto-Assets Regulation, MiCA, may still exit the bloc as compliance costs rise.

Cunti said stricter requirements have made it harder for new entrants to compete and that some firms may be unable to absorb the ongoing resources needed to operate under the framework long term.

The remarks come as the EU’s 18-month MiCA transition period ended on July 1, requiring crypto firms serving EU customers to operate under authorization or stop offering regulated services.

Cointelegraph also notes that exchanges restricted or withdrew services in parts of Europe after the deadline, and Cunti said MiCA could drive some startups and projects to launch in jurisdictions with lighter rules instead of navigating the EU regime.

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