The European Union's regulation of crypto asset markets is putting heavy pressure on small cryptocurrency companies, with licensing costs for startups reaching half a million euros, while only a few companies have obtained full MiCA licensing so far.

The MiCA regulation came into effect for crypto asset service providers on December 30, 2024, creating a unified licensing framework across all 27 EU member states. This regulation covers custody services, trading, advisory, and token issuance, replacing the previously diverse national rules that governed this sector.

For large exchanges with specialized legal teams and broad revenue sources, complying with MiCA requirements is manageable. However, for startups and niche companies, the situation is entirely different.