Gate Europe CEO: Crypto Companies with MiCA Licenses May Also Exit EU Due to Cost Burden

Analysts warn that even after the EU's MiCA crypto regulation framework went into full effect, some licensed firms may exit the market due to unsustainable compliance costs. Gate Europe CEO Giovanni Cunti noted that many businesses with MiCA licenses could struggle to maintain operations long-term, as the regulatory burden and resource demands exceed their capacity. The MiCA framework, which ended its 18-month transition period on July 1, requires service providers to obtain licenses or cease operations. Several exchanges, including Binance, failed to secure licenses before the deadline. Stricter regulations are also deterring new entrants, limiting competition while enhancing investor protections. However, the number of licensed entities continues to grow, with ESMA recently adding 14 firms to the registry, bringing the total to 294. Cunti highlighted that the market has shrunk from thousands to hundreds of participants, creating opportunities for remaining firms.