More crypto companies that secured licenses under the European Union's landmark Markets in Crypto-Assets (MiCA) framework could ultimately withdraw from the bloc, according to Gate Europe CEO Giovanni Cunti, who warns that the ongoing burden of compliance may prove too heavy for some operators.
Compliance Costs Weigh on Licensed Firms
Cunti argues that obtaining a MiCA license is only the first hurdle for crypto businesses seeking to operate in Europe. The more demanding challenge, he suggests, lies in maintaining the standards required to keep that authorization active over the long term.
Firms must invest heavily in staffing, legal expertise, reporting systems, and operational safeguards to remain in good standing with regulators. For smaller players, or those without deep reserves, these recurring expenses can erode the business case for staying in the market.
Winning a MiCA license is the easy part — surviving the compliance bill is what separates who stays and who leaves.
As Europe settles into its new regulatory era, the gap between companies that can absorb these costs and those that cannot is becoming more pronounced. Cunti's comments point to a potential consolidation, where only well-capitalized firms endure.
A New Era for European Crypto
MiCA represents one of the most comprehensive attempts by any major jurisdiction to bring order to the crypto sector, establishing clear rules for issuers, exchanges, and service providers across member states. Supporters say the framework offers legal certainty and consumer protection that the industry has long lacked.
Yet the same rigor that appeals to institutional participants may squeeze out businesses operating on thinner margins. The tension between robust oversight and market accessibility is now playing out in real time.
Key factors shaping which firms remain in the EU include:
- The ongoing cost of regulatory compliance and reporting
- Access to capital and operational scale
- Ability to compete against larger, better-resourced rivals
Cunti's outlook suggests the European crypto landscape could look markedly different in the coming years, with a smaller number of licensed entities commanding a larger share of the market as the regulatory environment matures.