The European Union has authorized 53 cryptocurrency firms under its Markets in Crypto-Assets (MiCA) regulation, marking a key moment in the EU crypto licensing race. Among the approved entities are major exchanges such as Coinbase, Kraken, and Bitstamp, alongside traditional finance players like BBVA and Robinhood.
However, glaring omissions include Tether, the world’s largest stablecoin issuer, and Binance, the globe’s top crypto exchange, both sidelined due to transparency and regulatory concerns.
The MiCA licenses allow firms to operate across all 30 European Economic Area (EEA) nations without requiring separate approvals in each jurisdiction.
Patrick Hansen, Circle’s EU policy head, confirmed the breakdown: 39 crypto-asset service providers (CASPs) and 14 stablecoin issuers have secured authorization. France, Germany, and the Netherlands dominate stablecoin approvals, while Germany and the Netherlands lead in CASP licenses.
Why Tether and Binance missed out in the EU crypto licensing race
The absence of Tether and Binance from the MiCA-approved list reflects mounting regulatory scrutiny in the EU crypto licensing race. Tether, issuer of the $110 billion USDT stablecoin, has long faced criticism for its lack of a full audit.
“Tether’s continual failure to undergo an independent audit raises a distressing red flag,” Consumers Research stated in a recent report.
CEO Paolo Ardoino acknowledged challenges in securing a top-tier auditor, citing reluctance from major accounting firms wary of crypto’s reputational risks.
Binance’s exclusion follows its retreat from multiple EU markets, including Germany and the Netherlands, amid investigations into money laundering and compliance violations.
“The EU’s strict governance rules under MiCA leave no room for ambiguity,” noted a spokesperson for the European Securities and Markets Authority (ESMA).
MiCA-compliant euro stablecoin by DWS and Deutsche Bank recently entered European market
MiCA’s stiff requirements reshape the crypto landscape
The EU crypto licensing race has exposed a stark divide between compliant firms and those struggling to meet MiCA’s rigorous standards. Key hurdles include:
Transparency mandates: Stablecoin issuers must publish detailed reserve reports.
Governance rules: CASPs need robust anti-money laundering (AML) frameworks.
Operational restrictions: Unbacked crypto assets face trading limits.
“MiCA is a game-changer for legitimizing crypto in Europe, but it’s also a filter,” said Hansen.
Traditional financial institutions like Trade Republic have adapted swiftly, while crypto-native firms face uphill battles.
What’s next for the EU crypto licensing race?
With MiCA’s next regulatory update due in September 2025, industry watchers expect further clarifications on:
Stablecoin issuance: Will Tether pursue compliance or exit the EU?
Enforcement actions: How will regulators handle unlicensed operators?
Market consolidation: Could smaller firms merge to meet capital requirements?
“The EU is setting a global benchmark,” said a Kraken spokesperson. “Those who adapt will thrive; others risk obsolescence.”
Jeremiah Musa lives and breathes storytelling. For over 12 years, he's chased breaking news, crafted hard-hitting features, and built content strategies that cut through the noise. These days, you'll find him leading the charge at The Bit Gazette, where he oversees a team of writers digging into the biggest stories in crypto.
Based in Dubai's fast-moving fintech scene, Jeremiah has a knack for translating complex blockchain concepts into sharp, engaging content. He's just as comfortable breaking down a Bitcoin whitepaper as he is explaining market moves to newcomers. Before diving into crypto, he cut his teeth in traditional financial journalism, covering everything from emerging markets to regulatory shakeups.
What keeps him up at night? Finding the human angle in every tech story. When he's not editing copy or prepping PR campaigns, he's probably arguing about the future of Web3 over karak chai or hunting down Dubai's best shawarma.
