Svmuu News: Giovanni Cunti, CEO of Gate Europe, stated that some crypto companies that have obtained licenses under the EU’s Market in Crypto-Assets Regulation (MiCA) may still exit the EU market due to rising compliance costs.
Cunti noted that stricter regulatory requirements make it more difficult for new entrants to compete, and that some licensed companies may not be able to sustain the costs and resources required for continued operations under this framework in the long term.
MiCA is the EU’s regulatory framework for crypto-assets; its 18-month transition period ended on July 1, requiring crypto firms serving EU customers to obtain authorization or cease providing regulated services.Binance. failed to obtain MiCA authorization by the deadline.
Last Friday, the European Securities and Markets Authority (ESMA) added 14 crypto-asset service providers (CASP) to its register, bringing the total number of authorized companies to 294. Cunti noted that the number of operators in the European market has shrunk from the thousands to the hundreds.