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EU Enforces MiCA, Concentrating Market Access Among Licensed Crypto Firms

Regulators' July 1 enforcement is concentrating users and liquidity with a smaller group of passported platforms and banks.

Overview

  • The MiCA transitional period ended on Wednesday, and ESMA told national regulators to require unauthorized crypto-asset service providers to stop onboarding new EU clients and execute orderly wind-downs.
  • ESMA updated its interim register after the deadline to add 37 firms and raise the total to 280 authorized providers, creating a public list of who can legally serve EU customers across the bloc.
  • Binance withdrew its Greek MiCA application in late June, restricted some EU services and halted new registrations at the July 1 cutoff, and its Europe head said the firm plans to reapply while disputing claims regulators sought to block it.
  • Licensed platforms and new passported entrants have seen material user and liquidity flows, with OKX reporting roughly $1.199 billion in net inflows and exchanges such as Coinbase running promotions to attract displaced customers.
  • The tighter regime raises near-term risks for euro and stablecoin liquidity and will likely speed consolidation of exchanges, custodians and stablecoin issuers as firms that lack MiCA authorisation cut services or seek new approvals.