“Acquiring a MiCA license isn’t as simple as having sufficient funds or influence,” he stated. “It’s about ensuring that every aspect is entirely transparent.”
However, Fazel noted that the new regulations are likely to pose the greatest challenges for startups, given that securing and upholding a license demands substantial financial resources.
“The group I feel most sympathetic towards is certainly the startups,” he expressed. “Companies lacking adequate funds might face obstacles in driving innovation.”
Ensuring Fair Competition
For exchanges that have obtained licenses, a pressing issue remains: can regulators effectively enforce the new regulations against companies operating beyond the European Union?
Lin Han, the founder and CEO of Gate Group, remarked that licensed exchanges have dedicated years to prepare for MiCA, but the system only succeeds if all participants comply.
The European Securities and Markets Authority (ESMA) has indicated that firms providing services to EU customers without MiCA authorization are in violation of EU law and should cease those activities. Additionally, it has cautioned companies against relying on “reverse solicitation” to continue servicing European clients and has advocated for practices like geo-blocking to limit access.
Han raised concerns about whether regulators possess the necessary resources to stop unlicensed platforms from operating internationally.