As MICA standardizes crypto regulations across the European Union, many companies have chosen to leave, consolidate or shift operations into more favorable jurisdictions.
The European crypto industry is undergoing massive reforms under the new MICA regime, and not all crypto businesses, also known as crypto assets service providers or CASPS, have been migrated, as the blockchain forensic company TRM Lab states.
In the blog post, analysts suggested that some companies are expected to close, while others are likely to merge for size. MICA was officially enacted on December 31, 2024. The rules aim to replace previously fragmented approaches with a single set of rules for all 27 EU member states.
As of April 15, only 17 cryptocurrency businesses approved under MICA in seven EU countries have been reported, according to European Securities Markets authorities. Another 15 entities were listed as non-compliant, all reported by Italian securities regulators.
“MICA aims to replace this patchwork with a single harmonious rulebook. Every CASP that is trying to operate in the EU must undergo a standardized approval process.
TRM Lab
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TRM Labs points out that it is a small number compared to more than 3,000 crypto companies previously registered across the EU before MICA. Blockchain’s Anthrix companies estimated that only 1,100-1,300 are actually active. Now, analysts suggest that these companies will have to go through a standard approval process to continue their operations, adding that existing companies may benefit from “grandfather’s regulations” depending on their country.
TRM Labs noted that the first quarter of 2025 already showed signs of a smaller, more regulated market being formed.
read more: Policy Head of Circle’s MICA Spreading Cryptody Regulations
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