Gate Europe CEO says MiCA costs could force some licensed crypto firms out of the EU

MiCA raises the cost of operating

Cunti told Cointelegraph that some companies authorized under the European Union’s Markets in Crypto-Assets framework, known as MiCA, may find it difficult to sustain the ongoing expense of meeting the bloc’s requirements. In his view, the framework’s stricter standards have made it harder for new entrants to compete, and some licensed businesses may ultimately be unable to absorb those costs over time.

MiCA is the EU’s regulatory framework for crypto assets. Its rollout has marked the start of a new operating environment for exchanges and other service providers across the region, with firms that obtained authorization beginning to work under the regime while others restricted or withdrew services in parts of Europe around the transition deadline.

Pressure on startups and new launches

Cunti also argued that the higher compliance burden could have broader consequences beyond firms that are already licensed. He said the framework leaves less room for innovation than jurisdictions with lighter requirements, which could encourage some crypto startups and projects to establish themselves outside Europe instead of launching in the bloc.

That dynamic, if it continues, could make it harder for Europe to attract new crypto businesses even as it builds a more tightly regulated market. Cunti’s comments stop short of predicting a broad exodus, but they point to a possible trade-off between regulatory certainty and the cost of entering and staying in the market.

Authorized firms continue to increase

Even with those concerns, the number of MiCA-authorized companies is still growing. The European Securities and Markets Authority, or ESMA, recently added 14 crypto-asset service providers to its register, bringing the total to 294.

That followed ESMA’s first update after the July 1 transition deadline, when 37 firms were added. The pace of additions appears slower in the latest revision, but the overall count continues to rise as more providers secure approval to operate under MiCA.

A smaller market may benefit survivors

Cunti said the regulatory shift is reducing the number of active operators in Europe, turning what had been a market of thousands into one made up of hundreds. He argued that this contraction could create a meaningful opening for the firms that remain, as customers move to preserve access to crypto services in the newly regulated environment.

In that sense, the stricter regime may produce two parallel outcomes: higher costs and barriers for firms trying to enter or stay in the market, and a potentially larger share of demand for the providers that succeed in meeting the new standards.

The comments reflect a market still adjusting to MiCA’s early effects. While ESMA’s register shows the licensed segment expanding, industry participants are also assessing whether the long-term cost of compliance will narrow the field further and influence where future crypto projects choose to launch.