New MiCA regime prompts crypto firms to exit EU market, analysts say

While Mica normalizes cryptographic regulations through the European Union, many companies choose to leave the block, to merge or move operations to more favorable jurisdictions.

EuropeThe cryptography industry is entering a major upheaval under the new Mica The regime, and as the Blockchain’s Medico -Legal Society, TRM Labs, says, all cryptographic companies – also known as cryptographic asset service providers – will not make the transition.

In a blogAnalysts have suggested that some companies should stop, while others are likely to merge on the scale. Mica officially entered into force on December 31, 2024. The settlement aims to replace the approach previously fragmented by a single set of rules for the 27 EU member states.

As of April 15, only 17 cryptographic companies had received authorization under mica in seven EU countries, according to the European Securities and Markets Authority, the report said. 15 other entities have been listed as non -compliant, all reported by the Italian securities regulator.

“Mica aims to replace this patchwork with a single book of harmonized rules. All the casps seeking to operate in the EU must now go through a standardized authorization process – increase the bar for compliance and clarity.”

TRM laboratories

TRM Labs notes that this is a small number compared to more than 3,000 cryptographic companies previously recorded across the EU before mica. The Anlytique de la Blockchain company estimated that only 1,100 to 1,300 of them were really active. From now on, these companies must go through a standard approval process to continue to operate, suggest analysts, adding that existing companies can benefit from “accelerated provisions” according to their country.

Although it is still too early to call which countries will emerge as the main destinations for authorization, TRM Labs stressed that the first quarter of 2025 already showed signs of a smaller and more regulated market.