With the full implementation of Europe’s crypto regulations, industry leaders concur that regulation is permanent, yet opinions differ on its consumer protection versus corporate favoritism.
By Olivier Acuna|Edited by Cheyenne LigonUpdated Jul 1, 2026, 2:24 p.m. Published Jul 1, 2026, 2:00 p.m. 3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on (ESMA/Media)SummaryShow- The EU's Markets in Crypto-Assets regulation is now fully operational, mandating that any crypto service provider in the 27-nation bloc must possess a MiCA license or cease operations.
- Industry experts acknowledge the regulatory clarity brought by MiCA but caution that the high costs of compliance may limit the number of licensed operators, potentially disadvantaging smaller firms.
- While leaders in the industry endorse the objectives of transparency and consumer protection, they question the ability of EU regulators to effectively monitor unlicensed offshore entities and maintain a fair environment for compliant exchanges.
The EU's crypto market has entered a new phase as of July 1, 2026, with the full enforcement of the Markets in Crypto-Assets (MiCA) regulation, which requires crypto companies serving customers within the 27-nation bloc to hold a license or halt their operations.
Numerous crypto service providers are facing suspension and had to cease servicing EU customers by midnight on June 30, leaving millions of European users searching for a MiCA-compliant platform.
While executives and legal experts welcomed the establishment of a unified regulatory framework across the EU, they hold differing views on whether MiCA results in a just market. Some argue that compliance costs are prohibitive for smaller firms, pushing them to relocate to other regions, such as Dubai. Others contend that the new regulations justly reward firms that prioritize transparency. A further concern is whether regulators can effectively curb unlicensed offshore firms from serving European customers illegally.
Joseph Borg, a Maltese lawyer and partner at WH Partners who has been advising crypto companies since 2016, stated, "I believe that regulating crypto on a European level is a very positive thing. Regulation is necessary."
However, Borg noted that the real challenge lies not in the regulation itself but in its enforcement by regulators. He predicts that the number of registered crypto asset service providers in Europe could plummet from around 3,000 to just 300 or 400 under MiCA, a scenario he suggested regulators may find preferable.
"I'm noticing that regulators are becoming more and more lazy," Borg remarked. "They prefer having 20 operators to regulate rather than invest in more technology and human resources to supervise more operators."
Who Can Afford Transparency?
Borg argues that the rising compliance costs disproportionately favor companies with larger legal and compliance teams. While MiCA does not explicitly favor larger companies, he believes the accompanying technical standards and supervisory requirements have made it increasingly challenging for startups to thrive.
Conversely, Alex Fazel, chief partnership officer at SwissBorg, insists that obtaining a MiCA license is more about the operational integrity of a business than its size.
"Transparency is key," Fazel asserted. "You cannot build trust without transparency."
SwissBorg successfully acquired its MiCA license from France's financial markets regulator this year. Fazel highlighted that the licensing process necessitated thorough documentation of governance, compliance protocols, and operational practices.
"A MiCA license is not something you can buy because you have money and power," he added. "It ensures that every process is fully transparent."
Yet, Fazel recognized that the new regulations will pose the greatest challenges for startups, as securing and maintaining a license demands substantial financial resources.
"If there's one segment I feel bad for, it's startups," he lamented. "Innovation may suffer for companies that don't have enough capital."
A Level Playing Field
For licensed exchanges, a pressing concern is whether regulators can enforce the new rules against entities operating outside the EU.
Lin Han, founder and CEO of Gate Group, noted that licensed exchanges have invested years preparing for MiCA, but the framework’s efficacy hinges on universal compliance.
"Everybody needs to follow the rule," Han emphasized. "Then we can compete on better service for users."
The European Securities and Markets Authority (ESMA) has indicated that firms serving EU clients without MiCA approval are violating EU law and must cease such operations. It has also cautioned against relying on "reverse solicitation" to continue servicing European customers and has advocated for methods like geo-blocking to restrict access.
Han questioned the capacity of regulators to prevent unlicensed platforms from continuing to operate from abroad.
"If unregulated or unregistered platforms can still provide services, then it's not a level playing field," he remarked.
Despite their differing opinions, all three industry leaders agree on one point: crypto regulation in Europe is permanent. Borg noted that MiCA has made banks more open to collaborating with crypto firms. Han emphasized that Europe remains a crucial market for global exchanges despite the heightened compliance costs. Fazel asserted that improved oversight should enhance consumer protections by providing customers with greater legal recourse in the event of a licensed firm's failure, and he believes it contributes to market stability.
"I really see regulators as a net positive for the industry," Fazel stated. "They're here to verify." For Borg, the full implementation of MiCA signifies a pivotal moment for crypto, stating, "It's very difficult to try to ban crypto. It is very difficult to try to kill crypto because it has become too big to fail."
RegulationMiCALatest Crypto News- 1Bitcoin climbs toward $60,000 after Fed Chair Warsh said inflation risks have come down25 minutes ago
- 2EthLabs launches as Ethereum undergoes its biggest leadership transition in years 51 minutes ago
- 3Europe is closing the door on offshore crypto, but it’s leaving the riskiest window open1 hour ago
- 4French banking giant Crédit Agricole rolls out euro stablecoin, EURXT1 hour ago
- 5Morpho poised to scale as DeFi infrastructure play, Standard Chartered says1 hour ago
- 6Ethereum gets a new nonprofit focused on institutional adoption1 hour ago
- 7Citi slashes 12-month bitcoin, ether targets as ETF flows dry up1 hour ago
- 8Tokenized Google stock inflated 7,700% in rare DeFi lending exploit1 hour ago
- 9What's next for Bitcoin and stocks? Analysts see a volatile second half2 hours ago
- 10Mysterious Solana project World unveiled as fully onchain prediction market2 hours ago
Building the Zcash Machine: Tachyon and Quantum Readiness
Building the Zcash Machine: Tachyon and Quantum Readiness
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
By CoinDesk ResearchJun 30, 2026Commissioned byGenZcashZcash’s Tachyon upgrade aims to scale shielded payments, enhance quantum readiness, and assess the viability of its funding, security, and governance.
Why it matters:
Zcash’s Tachyon upgrade aims to scale shielded payments, boost quantum readiness, and evaluate the sustainability of its funding, security, and governance.
View Full ReportMore From Policy