The European Union has granted licenses to 53 crypto firms under its Markets in Crypto-Assets (MiCA) regulation. This development marks a significant step in the EU’s efforts to create a comprehensive regulatory framework for the crypto industry. The approved firms can now operate freely within the EU, offering a range of crypto services to customers.
EU Welcomes 53 Firms
The EU has opened its business doors to 53 licensed firms, including well-known players such as Gemini, Bitpanda, and eToro. These firms were approved due to their compliance with the regulation’s requirements, including anti-money laundering and know-your-customer rules.
The EU’s MiCA regulation has been successful in attracting crypto firms to the region. The regulation provides a clear framework for crypto firms to operate within. Recently, several firms have secured the prestigious MiCA license, including prominent industry players. The EU’s crypto regulatory stance has become more welcoming, with 53 new firms already enjoying the MiCA license.
Qualification for EU MiCA License
The firms that were licensed have demonstrated their ability to comply with the requirements of the regulations. They have implemented robust systems and controls to ensure compliance with anti-money laundering and know-your-customer rules. The licensed firms will be subject to ongoing monitoring and supervision by the EU’s regulatory authorities.
Some notable firms, though, failed to qualify for the privilege. These firms, including Binance and Tether, are likely to face significant challenges in meeting the stringent requirements of the regulation. These firms will have to implement significant changes to their systems and controls to qualify.
Meanwhile, the EU has been considered a welcoming and regulatory-friendly environment for crypto investment, and has subsequently seen an influx of firms establish a presence in its territory. For example, Bybit, the world’s second-largest crypto exchange by trading volume, recently secured the EU’s MiCA license in Austria, establishing a new EU headquarters. The license enables the exchange to operate seamlessly across all 27 EU member states, thereby enhancing its credibility.
Similarly, Crypto exchange also obtained its Market in Crypto Assets (MiCA) in Luxembourg. The firm’s license comes barely a month after Bybit secured its operational license from Austria’s Financial Market Authority (FMA). Coinbase now offers a full range of crypto-related products and services to its over 450 million customers across the 27 member states of the European Union.
