Gate Europe CEO: More MiCA Licensed Crypto Companies May Exit EU Market

Gate Europe CEO Giovanni Cunti stated that some crypto companies that have obtained licenses under the EU's Markets in Crypto-Assets (MiCA) regulation may exit the EU market due to rising compliance costs. Stricter regulatory requirements have increased competition for new entrants, and some licensed companies may find it unsustainable to bear the costs and resources required to operate under this framework in the long term. MiCA is the EU's regulatory framework for crypto assets, and the 18-month transition period ended on July 1, requiring crypto companies serving EU clients to obtain authorization or cease providing regulated services. Binance failed to obtain MiCA authorization before the deadline. The European Securities and Markets Authority (ESMA) added 14 crypto asset service providers (CASPs) to its registry last Friday, bringing the total number of authorized companies to 294. Cunti noted that the number of operators in the European market has decreased from thousands to hundreds.

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