Late Licensing Surge as EU Crypto Regulations Take Effect

In the final days before the EU's MiCA transition period expired, a surge of approvals for crypto firms was noted, according to the latest ESMA register data. The register recorded 36 authorizations for crypto-asset service providers (CASPs) between June 23 and July 1, highlighting a rush to comply with new unified regulations.

Overview of MiCA Authorizations

The uploaded CASP register indicates that there are currently 283 authorized records. Notably, 66 of these authorizations were granted in June alone, with a spike observed right before the deadline. Specifically, 13 authorizations were issued on June 30, just one day prior to the conclusion of the transition period, followed by an additional approval on July 1.

ESMA had previously cautioned that any unauthorized providers servicing EU clients must discontinue onboarding new clients and commence the winding down of regulated activities post-transition period.

Geographical Distribution of Licenses

Germany is at the forefront of MiCA licensing, boasting the highest number with 59 authorized CASPs. France follows with 31, while the Netherlands has 28, Malta 22, and Cyprus 21. This data indicates that MiCA authorizations are concentrated in a few jurisdictions, despite the regulation providing a framework for licensed entities to operate across the European Economic Area.

Types of Authorizations and Their Implications

The register reflects that not all MiCA licenses carry equal standing. Services such as custody, transfers, and exchange operations are more prevalent compared to approvals for trading platforms. Only 17 firms are authorized specifically to operate a crypto trading platform. This disparity underscores that a high number of CASP authorizations does not equate to a similar number of fully functional exchanges, as many firms possess narrower licenses covering custody, transfer services, order execution, or crypto-to-fiat exchanges.