- The EU's MiCA regulation has drastically reduced the number of licensed crypto firms from around 3,000 to between 200 and 280, with nearly 90% failing to meet the new standards.
- Paymonade and Webull EU are among the few that secured MiCA authorization, while Binance and other major exchanges have ceased normal operations in Europe.
- The European Commission will review MiCA in 2027 to address DeFi, tokenization of real-world assets, and non-European stablecoins.
- Users of unlicensed platforms like Binance can still withdraw funds but face restricted services; regulated alternatives such as Bitvavo, Coinbase, and eToro are available.
The European Union’s Markets in Crypto-Assets (MiCA) regulation has fundamentally altered the crypto industry across the bloc. After the transition period ended on July 1, 2026, the number of fully authorized crypto service providers plummeted from roughly 3,000 to just 200–280, depending on the source. This means nearly nine out of ten previously operating firms have either left the market, restructured, or are now operating without a license, which is a direct violation of EU law.
Among the companies that successfully obtained a MiCA license is Paymonade, the trading name of Damoon Technology (Europe) AG, which received approval from Liechtenstein’s Financial Market Authority. Another notable approval went to Webull Securities (Europe) B.V., which secured authorization from the Dutch regulator shortly after the grandfathering period ended. These approvals highlight the high bar set by MiCA, which even some of the world’s largest exchanges and stablecoin issuers have failed to clear.
Massive Market Consolidation and the Fate of Major Exchanges
Independent analysis of the public register shows that only a small fraction of the top 100 global crypto exchanges by trading volume currently hold MiCA authorization. Several major global exchanges, including Binance, have been forced to suspend normal operations in the European Economic Area. Binance withdrew its license application in Greece on June 24, 2026, and has not yet secured approval elsewhere, though it has indicated plans to reapply in another EU member state. As a result, over a million European users can no longer trade, stake, or use most Binance services, though they can still withdraw their funds.
The situation has created a clear divide: regulated platforms like Paymonade, Webull, Bitvavo, Coinbase, and eToro are now the only options for European users who want to continue trading or earning yields. Paymonade, for instance, reported an annualized transaction volume of $1.8 billion in the first half of 2026 and plans to double its European workforce within a year. Its founder, Calvin Cheng, a former nominated member of the Singapore Parliament, emphasized that the era of lightly regulated crypto is ending and that firms combining innovation with regulatory trust will lead the next generation.
EU Plans 2027 Review to Address DeFi, Tokenization, and Stablecoins
Even as MiCA takes full effect, the European Commission has announced a formal review process set for 2027. The review will focus on three key areas: decentralized finance (DeFi), tokenization of real-world assets (RWA), and non-European stablecoins. The aim is to close legal gaps that have emerged during the initial implementation phase and to extend oversight to smart contract architectures that currently operate outside central bank radar. Stricter controls on stablecoins issued under non-EU jurisdictions, particularly those pegged to the US dollar, are also expected.
This upcoming review signals that the regulatory framework will become even more restrictive. Companies that want to scale globally will need to adapt their data processing and auditing systems immediately. The European Parliament has also urged addressing gaps in DeFi, staking, and NFTs to prevent renewed fragmentation across member states.
What Users of Unlicensed Platforms Should Do
For users of exchanges like Binance that lack MiCA authorization, the immediate consequence is not the loss of assets but the loss of full functionality. The European Securities and Markets Authority (ESMA) has made clear that unauthorized entities must have orderly wind-down plans that allow clients to recover or transfer their assets without undue harm. Users can still withdraw euros and cryptocurrencies, but cannot place new trades, deposit funds, or use staking and earn products>.
Experts recommend moving funds to a regulated exchange or a self-custody wallet. Several platforms are offering incentives: Bitvavo provides up to 10% APY on net deposits, Coinbase offers 5% in Bitcoin for Coinbase One members, and eToro gives 5% in shares for crypto transfers. It is crucial to verify the recipient’s MiCA license status via the ESMA interim register or national regulators like Spain’s CNMV before transferring assets. Also, moving crypto between wallets or exchanges does not trigger a taxable event, while selling for fiat does.
In the end, MiCA has brought order and security to the European crypto market, but at the cost of reduced competition and fewer choices for consumers. The number of licensed providers has shrunk dramatically, and the upcoming 2027 review will likely tighten rules further. For now, the message is clear: only platforms that have met the stringent requirements can operate, and users must adapt to this new reality by moving their assets to regulated venues or taking full control of their own keys.
