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

As MiCA standardizes crypto regulation across the European Union, many firms are choosing to leave the bloc, merge, or shift operations to more favorable jurisdictions.

Europe‘s crypto industry is entering a major shake-up under the new MiCA regime, and as the blockchain forensic firm TRM Labs puts it, not all crypto business — also known as crypto asset service providers or CASPs — will make the transition.

In a blog post, the analysts suggested that some firms are expected to shut down, while others are likely to merge in search of scale. MiCA officially came into force on Dec. 31, 2024. The regulation aims to replace the previously fragmented approach with a single set of rules for all 27 EU member states.

As of April 15, only 17 crypto businesses had received authorization under MiCA across seven EU countries, according to the European Securities and Markets Authority, the report reads. Another 15 entities were listed as non-compliant, all reported by Italy’s securities regulator.

“MiCA aims to replace this patchwork with a single, harmonized rulebook. All CASPs seeking to operate in the EU must now go through a standardized authorization process — raising the bar for compliance and clarity.”

TRM Labs

TRM Labs notes that’s a small number compared to the over 3,000 crypto firms previously registered across the EU before MiCA. The blockchain anlytics firm estimated that only 1,100 to 1,300 of these were actually active. Now, those firms must go through a standard approval process to continue operating, the analysts suggest, adding that existing firms may benefit from “grandfathering provisions” depending on their country.

While it’s still might be too early to call which countries will emerge as the leading destinations for authorization, TRM Labs pointed out that the first quarter of 2025 already showed signs of a smaller, more regulated market taking shape.