The European Union has issued approximately 230 licenses so far under the Crypto Asset Markets Regulation. Data shared by Wu Blockchain shows that this number previously included only a limited portion of the more than 1,200 crypto companies operating under national registration schemes in member countries.
Germany came to the fore in the license race
The highest number of approvals by country was recorded in Germany with 56 licenses. The Netherlands followed Germany with 26 licenses and France with 21 licenses. As the transition period approaches its end, the speed of the licensing process has become more critical for companies that want to stay in the European market.
In July, the remaining transitional arrangements under MiCA will officially end. Crypto companies that fail to obtain the necessary authorization will not be able to serve customers within the European Union. In this case, some companies will have to stop their activities and some will have to phase out their business.
With the end of the transition period in July, companies that do not receive the necessary authorization will not be able to provide services in the European Union market and will have to stop their activities or liquidate.
Audit period under one roof with MiCA
MiCA stands out as the European Union’s first comprehensive regulatory framework focused on digital assets. Arrangement; It brings crypto exchanges, brokers and wallet service providers into a common control structure similar to traditional financial institutions.
Thus, companies can operate under a single framework covering all 27 EU members, rather than having to comply with different rules in each country. Companies licensed in one country can extend their services throughout the union as long as they meet common standards such as capital adequacy, corporate governance, protection of customer assets and anti-money laundering obligations.
Mini dictionary: MiCA is the European Union’s common set of rules for crypto asset service providers and certain types of tokens. “Passporting” means that the authorization obtained in an EU country allows services to be provided in other member countries without the need for an additional national license.
Lack of applications in France drew attention
France was one example illustrating the challenges posed by the new regulatory environment. According to information provided by industry representatives, approximately 40% of previously registered crypto service providers in the country have not applied for a MiCA license.
Some companies withdrew their applications, while others turned to seeking partnerships with licensed organizations. It is stated that there are also businesses that are preparing to exit the market completely.
Stricter rules challenge smaller companies
Many actors in the market believe that MiCA can strengthen stability and increase consumer protection. On the other hand, the assessment that the heavier compliance burden puts disproportionate pressure especially on small crypto companies also stands out.
This picture indicates that the diversity of market participants may decrease as the sector is shaped by stricter rules. The number of companies that cannot complete the licensing process after July will be one of the determining factors in the new structure of the European crypto market.
