Giovanni Cunti said rising compliance costs could undermine long-term operations even after the MiCA transition ended on July 1 and ESMA’s register reached 294 CASPs.
Some crypto companies that secured MiCA licenses may still exit the European Union because compliance costs are rising, Gate Europe CEO Giovanni Cunti said. He argued that the bloc’s tougher requirements are making it harder for new entrants to compete and could push some licensed firms out over time, even after they gain approval. Cunti also said the framework may drive some startups and projects to launch in jurisdictions with lighter rules, despite stronger investor protections under MiCA. The 18-month MiCA transition period ended on July 1, requiring crypto firms serving EU customers to obtain authorization or stop offering regulated services. ESMA added 14 crypto-asset service providers last Friday, bringing the total on its register to 294 after an earlier post-deadline update added 37 firms. Binance, the world’s largest crypto exchange by trading volume, did not secure a MiCA license before the deadline.