The EU MiCA transition period is coming to an end and some 230 encryption companies have been authorized. As the deadline approaches, companies that are not licensed will not be able to continue to provide services to EU clients.
The number of license plates is still only a fraction.
These 230 plates represent only a small fraction of the more than 1,200 encryption enterprises previously registered in EU member States. Germany was headed by 56, the Netherlands 26 and France 21 respectively.
Transitional arrangements expire in July
From July onwards, the remaining transitional arrangements under the MiCA will officially lapse. Companies that do not have the necessary authorization either cease to operate or phase out the market.
Harmonized regulatory coverage in 27 countries
MiCA is the first comprehensive regulatory framework for digital assets in the EU. Exchanges, brokers and wallet service providers will be subject to uniform regulation and may operate within 27 member countries upon approval.
It's more obvious that small companies are under pressure.
According to industry sources, about 40 per cent of previously registered encryption services in France have yet to apply for a MiCA license. Some companies have withdrawn their applications, in part to cooperate with licensed institutions, and others are prepared to leave the market directly.