After the implementation of the Markets in Crypto-Assets (MiCA) framework, the crypto industry is still struggling to meet compliance requirements. Data from the European Securities and Markets Authority (ESMA) revealed that only 11 stablecoin issuers and 15 crypto-asset service providers (CASPs) have received authorization, highlighting the challenges faced by companies in obtaining a MiCA license. Without this license, crypto firms are unable to provide services across the 30 countries in the European Economic Area (EEA), prompting them to expedite their licensing efforts.
Despite the progress made in licensing stablecoin issuers, with 11 entities from six EU countries authorized to issue e-money tokens (EMTs), there are still gaps in the framework. Notably, no asset-referenced token (ART) issuers have been authorized yet, and only about 25 white papers for digital assets outside of EMT or ART classifications have been submitted to regulators. This includes popular tokens like Bitcoin and Ethereum, indicating the need for further compliance in the industry.
Italy’s financial authority, CONSOB, has increased enforcement under the new framework, adding 15 names to its list of non-compliant entities. This signals growing scrutiny by regulators and emphasizes the importance of meeting MiCA standards to avoid penalties. Additionally, Tether, the issuer of the world’s largest stablecoin USDT, is notably absent from the list of approved stablecoin issuers, leading to delistings from EU-based exchanges. Tether has proposed solutions such as their Handron platform and investment in Quantoz Payments to navigate regulatory challenges.
On the CASP front, ESMA has listed 15 authorized providers, including major crypto platforms like Crypto.com, OKX, Bitpanda, and eToro, as well as traditional financial institutions like BBVA and Clearstream. However, some previously listed firms, such as MoonPay and Hidden Road, are no longer on the registry, indicating potential changes in their status or ongoing regulatory review. Germany leads the region with six licensed CASPs, followed by Malta with five, showcasing the regional distribution of compliant service providers in the crypto industry.
In conclusion, the implementation of the MiCA framework has brought challenges and opportunities for the crypto industry in Europe. While progress has been made in licensing stablecoin issuers and CASPs, there are still gaps and areas for improvement. Increased enforcement by regulators and the need for compliance with MiCA standards underscore the importance of meeting regulatory requirements to operate within the EEA. Companies in the crypto space must continue to accelerate their efforts to obtain authorization and ensure compliance with the evolving regulatory landscape in order to thrive in the market.
