EU reaches 230 MiCA licenses but crypto market diversity under pressure

Europe now counts around 230 granted MiCA licences, but the new regulation also raises questions. Although the legislation strengthens the stability of the crypto market, diversity is actually decreasing. Smaller players in the sector in particular are feeling the pressure most acutely. Reports LesEchos.

Germany leads, but not all countries are taking part

The register of the European market supervisor ESMA clearly shows which countries are leading the way in the MiCA era. Germany tops the list with 56 licences, followed by the Netherlands with 26 and France with 21. Next come Malta with 15, Cyprus with 13 and Ireland with 12. Austria stands at nine licences, while Spain, Luxembourg, Liechtenstein and the Czech Republic have each issued seven licences.

Yet the picture is not equally rosy everywhere. Several EU member states still have no recognised provider at all. This shows that the implementation of MiCA is fragmented and that not all countries are making the same progress in regulating the crypto sector.

Smaller crypto companies face difficulties

In France the situation gives extra cause for concern. About 40% of registered crypto service providers are not filing a MiCA application. Some companies are even withdrawing their application, seeking partnerships with other parties or heading towards closure. This pattern points to a sector that is repositioning itself under the pressure of stricter requirements.

Industry peers acknowledge that MiCA increases the resilience of the market, but at the same time state that the regulation has a price. Smaller crypto companies can bear the compliance burden less well than large players, causing the market to consolidate further. Less diversity ultimately means less competition and possibly less innovation within the European crypto sector.