Only 7% of Europe's Crypto Firms Hold MiCA Licences Pre-Deadline

Europe's crypto sector is experiencing a significant contraction as only about 210 firms hold a Markets in Crypto-Assets (MiCA) licence ahead of the July 1 deadline, according to BeInCrypto. This figure represents just 7% to 8% of the nearly 2,747 Virtual Asset Service Provider (VASP) registrations across the EU in 2024. The MiCA framework imposes stringent requirements, including governance frameworks and cybersecurity controls, which smaller firms find challenging to meet. Post-July 1, unlicensed entities face options such as obtaining a licence or ceasing operations, with potential consolidation expected in late 2026.