The European Union’s comprehensive cryptocurrency regulatory framework, known as MiCA, entered full force on 1 July, replacing a fragmented landscape of 27 national rules with a single, strict system.
However, the immediate aftermath has revealed significant structural weaknesses: a severe shortage of licensed entities and enforcement inconsistencies that global competitors are already positioning to exploit.
Handelsavisen previously reported that EU regulators are intensifying enforcement actions against thousands of firms operating without proper authorization.
The transition has been abrupt for the industry.
According to Euronews, the execution phase has been challenging for crypto firms, with fewer entities than anticipated securing the necessary authorization to operate legally within the bloc.
This licensing bottleneck creates a paradox: while the EU aims to build a "financial fortress" to tame market volatility, the high barrier to entry is pushing business activity toward jurisdictions with more permissive or established frameworks.
Handelsavisen previously reported that EU regulators are intensifying enforcement actions against thousands of firms operating without proper authorization.