No big-name cryptos among handful of MiCA-licensed CASPs, few stablecoins comply

None of the global crypto brands are among the handful licensed as crypto asset service providers (CASPs) under the EU Markets in Crypto-Assets Regulation (MiCA), early data shows. Circle is the only top brand among the few to have obtained permissions for stablecoins under the regime.

“The authorisation process under MiCA is expected to be rigorous, ensuring CASPs have adequate controls to meet MiCA compliance and protect their EU clients,” said a European Securities and Markets Authority (ESMA) spokesperson.

“ESMA fully supports competent authorities taking the necessary time to perform thorough controls and checks before granting CASP authorisations and to confirm CASP applicants’ readiness. This is particularly important as many applicantsʼ activities were subject to very limited requirements prior to MiCA, resulting in a limited compliance culture.”

Given the rigorous nature of the regime, it was unsurprising so few CASPs were authorised in its first weeks. Demand for authorisation has been strong, the spokesperson added.

Some 62 of the top centralised crypto spot exchanges (CEXs) do not currently have a licence or registration in one of the 30 countries in the European Economic Area (EEA), and are not positioned to benefit from MiCA’s grandfathering period, according to research by Gibraltar-based VASPnet, which provides data on virtual asset service providers (VASPs).  

Six licensed CASPs

Only six CASPs have been granted MiCA licences since the regime went live on December 30, 2024. Of these, four are licensed by the Dutch Authority for the Financial Markets (AFM) and the remaining two by Germany’s Federal Financial Supervisory Authority (BaFin) and Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF).

Binance, ByBit, Coinbase, KuCoin, OKX, Kraken, Bitstamp, Gemini, Robinhood, and Revolut are not yet compliant with the regime.

Hundreds of crypto asset businesses operate in the EU under local licensing regimes including the larger CASPs, and many are registered in multiple EU jurisdictions. Many national competent authorities (NCAs) have been accepting MiCA applications for at least six months, but the majority have introduced grandfathering periods of up to 18 months.

Gemini announced yesterday it would seek a MiCA license in Malta. Revolut is seeking a MiCA license in Cyprus where its digital asset business is registered, said a spokesperson.

Some CASPs may be keeping their powder dry to focus on the US, where the Trump administration is expected to promote crypto-friendly policies.

“For those US crypto companies that have not opted to become compliant with MiCA, from a commercial perspective it probably makes more sense to focus on the US right now,” said Patrick Tan, general counsel at ChainArgos, a blockchain intelligence company in Singapore.

Bybit “adjusts”

Bybit, which claims to be the worldʼs second largest cryptocurrency exchange, said last July it was well positioned to adapt to the evolving regulatory landscape and was “excited about the opportunities MiCA presents for the EU to become a global leader in the responsible development of the crypto industry”.

In December, two weeks before the MiCA deadline, Bybit said in a press release it had temporarily “made the difficult decision to generally cease all communication with the EEA region”. It added that it is pursuing a MiCA licence in Austria, and would be “deeply committed to serving its EEA clients” once it receives one.

CASPs must de-list non-compliant stablecoins

The MiCA stablecoin regime went live on June 30, 2024 but so far only 11, issued by five different providers, have licences. ESMA issued a statement reminding CASPs to assess their listed stablecoins’ compliance with MiCA and to de-list non-compliant ones. At this point, that is all but 11 stablecoins referred to as asset-referenced tokens (ARTs) or Electronic Money Tokens (EMTs) in MiCA.

Last week, the EU watchdog told CASPs they must de-list non-compliant ARTs and EMTs by the end of the first quarter.

ESMA reminded CASPs it cannot issue a no-action letter, saying it does not “possess any formal power to disapply a directly applicable EU legal text”. NCAs should examine CASPs’ compliance with stablecoin rules when considering licensing applications, ESMA said.

Spokespeople for KuCoin, Revolut, and Kraken said the CASPs were dedicated to compliance. The ESMA announcement was only issued on Friday and Gemini was assessing the situation, a spokesperson said. Other CASPs mentioned in this article did not comment on stablecoins.

Global trends favour US

The US was well positioned as a market for VASPs before Donald Trump was elected last November. The US has 64 unique VASP entities registered with the Financial Crimes Enforcement Network (FinCEN), Financial Industry Regulatory Authority (FINRA) and the New York Department of Financial Services (NY DFS) — more than any other country, VASPnet’s research showed.

Some 45 of the top centralised crypto spot exchanges (CEX) hold a money transmitter licence with FinCEN or are registered as a money service business with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), Although this represents a high percentage, entities registered with FinCEN and FINTRAC are not subject to regulatory supervision, VASPnet’s report said.

Binance,  Coinbase, Bitstamp, OKX, and Robinhood did not respond for requests for comment. KuCoin and Kraken’s spokespeople emphasised their firms’ commitment to regulatory compliance and said they would be seeking the appropriate EU licenses.