Only 7% of European Crypto Companies Are Ready Before the MiCA Deadline

Less than a month before the July 1st deadline, the European digital assets market is entering a decisive phase. Around 210 companies currently hold a MiCA license, compared to 2,747 VASP registrations recorded in 2024. This drop signals a shift for crypto in Europe, with a narrower, more regulated sector facing much heavier requirements.

MiCA: a transition that strongly reduces the number of players

The MiCA authorization accelerates the selection among European digital asset service providers. According to data shared by Be In Crypto, in 2024, Coincub estimated 2,747 VASP registrations within the European Union. In May, ITISPay reported about 210 authorizations, or nearly 7% to 8% of the previous volume. This new framework thus transforms a very fragmented market into a more limited space, where only the strongest applications pass the authorization stage.

In Estonia, the financial intelligence unit recorded 641 licensed PSAVs in June 2021. This number fell to 45 in October 2024, then to 40 in February 2025. The country, once a major European cryptocurrency hub, illustrates the sector’s contraction. This decline therefore does not concern only a few isolated players. It reflects a broader reorganization, driven by the shift from national regimes to a common European logic.

Crypto: why small entities struggle to obtain a license

The CASP regime requires governance frameworks, prudential capital, cybersecurity controls, client protection, and ongoing communication with authorities. For small crypto players, these fixed costs are hard to absorb, especially when teams are small and already have to manage their daily operations.

Faustine Fleuret, public affairs director at Morpho and former ADAN president, highlights this point. According to her, “MiCA applies the same rules to a startup and an international group, without clear adjustment for size or risk level.” This approach increases the administrative burden for the least capitalized companies.

The authorization process under the old national regimes was already demanding. However, MiCA raises the expected level regarding compliance, transparency, and supervision follow-up. As a result, some crypto companies lack the human or financial resources to complete their application.

In France, the situation confirms these difficulties. According to a Reuters report, among approximately 90 unauthorized companies, 30% had submitted an application, 40% planned to remain unauthorized, and 30% had not responded to the regulator. This distribution shows that the deadline acts as a filter but also as a withdrawal signal for some providers.

After July 1st, a more concentrated market emerges

After the deadline, unauthorized entities will have to choose from several options: obtain authorization, cease operations, arrange their liquidation, transfer their clients to an authorized CASP, or merge with a licensed holder. MiCA thus places business continuity at the center of strategic decisions.

The case of Fazil Crypto also shows the interest an authorization can create. After obtaining its CASP license in Spain, the Madrid-based company received inquiries from platforms, payment companies, law firms, M&A advisors, entrepreneurs, and even players outside Europe.

At the same time, law firms closely following the transition anticipate a wave of consolidation in the second half of 2026. MiCA could then accelerate mergers between companies, especially as unauthorized structures seek an orderly exit.

By the end of 2026, the European crypto market is therefore likely to be smaller and more concentrated. MiCA could also strengthen individual protection, but this effect will depend mainly on the concrete application of the rules after the deadline. The sector will then enter a phase where compliance, available capital, and the capacity to engage with authorities will weigh more heavily in competition.