Mica Is Turning Europe Into A Licensing Test For Every Type Of Crypto Company

What Happened

“Many retail investors may only now be realizing that some platforms they have used for years might not be authorized to continue operating in the European market,” Schwitalla said. “As a result, users are increasingly assessing the regulatory status of their providers and, in some cases, whether they need to migrate assets to licensed institutions.”

“A broker, an exchange, a custodian, a stablecoin issuer and an advisory provider do not all face the same obligations,” Bohrn said. “For established European players that have already invested in governance, compliance, custody standards and risk management, MiCA is demanding but also a natural next step.”

Market Context

Europe entered a new phase of crypto regulation on July 1, 2026, when the final transitional period under the Markets in Crypto-Assets Regulation expired. Crypto-asset service providers operating under earlier national regimes had until this date to obtain MiCA authorisation or begin ending their EU activities.

BeInCrypto interviewed Philipp Bohrn, vice president of group governance at Bitpanda, Mike Schwitalla, chief commercial officer at Crypto Finance Group, and Chagri Poyraz, chief strategy officer at OSL Group, about how MiCA is changing Europe’s crypto market.

Europe’s Crypto Market Splits Along Regulatory Lines

Trading platforms and brokers face requirements involving governance, market conduct, client information, and operational controls.

Banks encounter a different calculation. Rather than obtaining every technical and regulatory capability internally, they can work with authorised custodians, brokers and trading providers whose systems have already undergone supervisory review.

Why It Matters

MiCA became fully applicable in December 2024, although existing companies could continue operating under national transitional arrangements. Those arrangements lasted until July 1, 2026 at the latest, or ended earlier when a company received or was refused authorisation.

European users may now need to confirm whether a familiar exchange, broker or custodian appears in ESMA’s register. Some providers have transferred clients to authorised European entities, while others have restricted account functions or withdrawn from the region.

The decline in provider numbers may concentrate activity among companies able to meet the requirements and absorb customers leaving unauthorised platforms.

It could also strengthen relationships between licensed crypto companies and banks, asset managers or corporate counterparties whose internal policies require regulated service providers.

Authorisation creates accountability around the provider, although it leaves the financial risks of crypto assets intact. European supervisory authorities continue to warn consumers that protections vary according to the product and service involved.

Details

The deadline has reduced the number of providers able to serve the region, strengthened the commercial value of an EU licence, and raised new questions about product access, passporting, and consistent enforcement across member states.

MiCA is now changing which companies can reach European users, which assets appear on their platforms and how regulated providers describe the protection attached to their services.

Mike Schwitalla, chief commercial officer at Crypto Finance Group, described the deadline as the point at which the distinction between regulated and unauthorised providers became visible to users.

Philipp Bohrn, vice-president of group governance at Bitpanda, said the absence of authorisation after the extended preparation period gives users relevant information about a company’s regulatory standing.

“It is now becoming clearer which companies are authorised, supervised and accountable in Europe, and which are operating outside that framework,” Bohrn said.

One Regulation Creates Different Tests Across the Industry

MiCA covers several types of crypto businesses, yet the obligations depend on the services each company provides.

Custodians must maintain custody policies and agreements with clients, while applicants holding customer assets must describe how those assets and funds will be segregated.

Stablecoin issuers operate under a separate set of requirements covering reserves, disclosures, redemption, and supervision. The European Banking Authority also assesses whether asset-referenced tokens and electronic money tokens qualify as significant, which can bring additional oversight.

Advisers, order executors and portfolio managers encounter obligations linked to their own activities. A single MiCA licence therefore represents authorisation for specified services rather than a universal approval covering every product offered by a company.

The difference is especially important for global companies accustomed to serving several European countries through national registrations or cross-border access. MiCA requires an authorised European entity with effective management and a genuine presence in an EU member state.

Schwitalla said this changes the point from which financial institutions can begin developing digital-asset products.