Gate Europe CEO Says Even MiCA-Licensed Crypto Firms May Leave EU Over Compliance Costs

Even some crypto companies that secured licenses under the European Union’s Markets in Crypto-Assets regulation, or MiCA, may still leave the market because of rising compliance costs, Gate Europe Chief Executive Officer Giovanni Cunti said.

Cunti made the remarks on Cointelegraph Chain Reaction, according to a July 21 report by Cointelegraph.

Many companies that obtained MiCA licenses may struggle to absorb the long-term costs and resources required to keep operating, he said.

MiCA is the EU’s regulatory framework for crypto assets. Its 18-month transition period ended on July 1. Crypto firms serving EU customers must now either obtain authorization or stop offering regulated services.

Since the deadline passed, some exchanges have restricted services or withdrawn from parts of Europe. Firms that received approval have started operating under the new regime. Binance, the world’s largest crypto exchange by trading volume, did not secure a MiCA license before the deadline.

Cunti also said MiCA’s stricter requirements could push some crypto startups and projects outside Europe. While the rules have strengthened investor protection, they may leave less room for innovation than jurisdictions with lighter regulation.

"Some projects, perhaps important ones, may need to prepare for the possibility of considering jurisdictions with different guidelines," he said.

The number of MiCA-authorized firms is still increasing. The European Securities and Markets Authority recently added 14 crypto-asset service providers, or CASPs, to its register, bringing the total to 294.

Cunti said the regulatory burden is reshaping competition in Europe’s crypto market, but could also create openings for firms that stay. "This used to be a market with thousands of operators, but now it is a market with only hundreds," he said. "As customers do not want to lose access to this market, there is a big opportunity for the operators that remain."