EU's MiCA Reshapes Crypto Industry as SwissBorg Secures License

The European Union's Markets in Crypto-Assets regulation, or MiCA, became fully applicable on December 30, 2024, creating a harmonized licensing system for crypto-asset service providers across member states. It also introduced disclosure, client-asset protection and anti-money-laundering requirements. The regime's “single passport” determines whether firms can remain in the EU market and is seen as a key threshold for integrating the crypto industry with traditional finance.

MiCA's transition period of up to 18 months expired on July 1, 2026, and the European Securities and Markets Authority, or ESMA, has required unauthorized firms to stop providing services. Market estimates suggest more than 80% of exchanges could exit and about 10 million users may need to move to other platforms. Coinbase, OKX and Kraken have secured licenses, while Germany is among the leaders in authorization progress across member states.

The European Union's Markets in Crypto-Assets regulation, or MiCA, creates a unified framework governing crypto-asset issuance and service providers. However, licensing applications, capital requirements and cross-border compliance procedures have also raised operational barriers. By comparison, Dubai's Virtual Assets Regulatory Authority, or VARA, provides a dedicated licensing regime, while the city can serve as a base for expansion into Global South markets across Asia, Africa and elsewhere.

With MiCA's transition period set to expire on July 1, European crypto founders are reassessing where to base their operations, and some companies are preparing to relocate their businesses to the United Arab Emirates. Dubai is attracting firms with faster licensing and a clearly designated regulatory point of contact. The report did not disclose the total number of companies planning to move, the amount of investment involved or individual firms' compliance costs.

The European Union's Markets in Crypto-Assets Regulation, or MiCA, took effect on June 29, 2023. Its stablecoin provisions became applicable on June 30, 2024, followed by rules for other crypto-asset service providers on December 30 that year. The European Securities and Markets Authority maintains the central register, making licensing a critical threshold for exchanges operating in Europe.

Binance co-founder Yi He addressed concerns about the company's European strategy in a lengthy bilingual post on X on June 26, 2026. She said the EU accounts for a relatively small share of Binance's business but remains strategically important. Citing the early bans faced by Uber and Airbnb, she argued that regulatory setbacks can make companies stronger. She also stressed that holding a license does not necessarily amount to genuine compliance, adding that Binance would operate to the industry's gold standard with the goal of surpassing traditional finance.

The European Union's Markets in Crypto-Assets regulation, or MiCA, became law in 2023 and has applied in phases since 2024, establishing harmonized rules for token issuance, stablecoins and crypto-asset service providers. As the market becomes more institutionalized and tokenized, whether the current regime can cover emerging business models has become a key issue for the next phase of regulation.

Peter Kerstens, a European Commission adviser and architect of the MiCA framework, told Paris Blockchain Week 2026 that the EU was highly likely to pursue “MiCA 2.” He argued that tokenization should take priority over rushing to add DeFi rules. The EU is expected to complete a review by 2027 based on market maturity and industry feedback, while considering potential legislative amendments.