MiCA-Licensed Crypto Firms May Exit EU Market: Gate Europe CEO

Following the conclusion of the European Union's comprehensive crypto regulation, the Markets in Crypto-Assets Regulation (MiCA), on July 1, 2026, Gate Europe CEO Giovanni Cunti has cautioned that even MiCA-licensed crypto firms could face the risk of exiting the EU market due to rising compliance costs. Cunti stated in an interview with Cointelegraph Chain Reaction that the market will be challenging for firms unable to bear the long-term costs and resource burdens imposed by the new regulatory requirements.

MiCA aims to provide a harmonized regulatory framework across Europe for crypto-asset service providers, thereby addressing legal uncertainties, enhancing investor protection, and strengthening market integrity. However, the regulation introduces extensive disclosure, governance, and audit requirements. Gate Europe itself secured a MiCA Crypto-Asset Service Provider (CASP) authorization from the Malta Financial Services Authority (MFSA) on September 29, 2025, and is listed in the official register of the European Securities and Markets Authority (ESMA). Nevertheless, Cunti indicated that MiCA's stricter regulatory demands have intensified competition, particularly for new entrants, and that some licensed firms might ultimately be unable to sustain the ongoing operational costs under the framework.

With MiCA's implementation, a significant consolidation has been observed in the European crypto market. Cunti noted that a market that once had thousands of operators has now shrunk to only hundreds of players. This situation has led to many firms unable to comply with the regulations withdrawing from the market. For instance, some major players like Binance reportedly exited the European market without obtaining MiCA licenses. However, Cunti added that this contraction could create substantial opportunities for the remaining compliant operators in the market.

MiCA aims to provide a single “European passport,” enabling crypto businesses to operate scalably across borders within the EU. The regulation incorporates robust anti-money laundering (AML) and investor protection standards to foster trust in crypto markets. Yet, there are concerns that the stringent regulatory environment might push some crypto startups and projects toward less restrictive jurisdictions outside Europe. This could potentially slow down the pace of innovation in Europe and lead to liquidity dispersion.

According to ESMA records, the number of authorized Crypto-Asset Service Providers (CASPs) has reached 294. Analysts suggest that MiCA's long-term success hinges on universal compliance across all platforms. The continued operation of unregulated platforms serving EU clients could undermine the regulation's goal of creating a fair competitive landscape. In the coming period, the full impact of MiCA and market dynamics will become clearer as compliance costs continue to exert pressure on firms' operational strategies.