The European Union's Markets in Crypto-Assets regulation takes full effect on July 1, ending the transitional period that let existing firms operate under national regimes. Fewer than 60 crypto asset service providers hold a MiCA license across the bloc, and only 14 exchanges are authorized to offer trading in Europe once the clock runs out.
Germany's outsized share
Germany's financial regulator BaFin has authorized about 18 Crypto Asset Service Providers, or roughly 36% of all MiCA licenses issued so far. That far outstrips the Netherlands and Malta, the next-largest issuers. BaFin added 16 new licensed institutions in the fourth quarter of 2025 alone, and DZ Bank secured a MiCA license in January 2026.
Germany's early lead didn't happen by accident. The country cut its grandfathering window to 12 months, closing on December 31, 2025, which forced firms to file earlier than they might have elsewhere. Compliance costs for a MiCA license typically run between €250,000 and €500,000 — a steep hurdle for smaller players.
Backlogs and rejections
Not every national regulator is moving at the same pace. France's AMF issued warnings and noted that roughly 30% of French crypto firms had not filed as of late 2025. Lithuania's central bank has seen fewer than 10% of the roughly 30 registered companies apply for a license. Regulators in France, Ireland, and Malta are sitting on significant backlogs.
BaFin rejected Ethena's USDe stablecoin filing outright, a reminder that approval is far from guaranteed. Over in Malta, an ESMA peer review from July 2025 found shortcomings in the Malta Financial Services Authority's authorization process, including weak business model assessments, conflicts of interest, and ICT architecture reviews. ESMA urged national competent authorities to check compliance with the Digital Operational Resilience Act during authorization.
What comes after July 1
Once the deadline hits, any firm that didn't make the cut faces an awkward choice: either halt EU-facing services or scramble for a last-minute license in a jurisdiction that still has capacity. With only 14 exchanges cleared to offer trading across the entire bloc, concentration is a real concern.
Firms that missed the window might look at Germany, where BaFin has shown it can process applications. But the cost and documentation demands haven't eased. The July 1 deadline is fixed — no extension, no grace period. What happens to the firms that haven't filed, or whose applications are still in the queue, is the open question as the countdown ticks below two weeks.
