EU Crypto Market Faces Survival Challenges Despite MiCA Licenses

Gate Europe CEO Giovanni Cunti warned that a Markets in Crypto‑Assets (MiCA) license alone does not guarantee long‑term viability for crypto firms operating in the European Union. While the July 1 implementation of MiCA has harmonised regulation and boosted institutional confidence, the associated compliance costs and the Travel Rule requirements are creating a heavy financial burden.

The EU register of MiCA‑licensed firms has risen to 294, down from thousands of operators before the regime took effect. Cunti says many licensed companies may still exit the bloc because the ongoing costs strain balance sheets, and even large players such as Binance missed the licensing deadline. The market contraction leaves fewer competitors but favors firms that can sustain the regulatory expense and capture the migrating customer base.