A new report from TRM Labs finds that only one in five crypto service providers that operated in Europe before MiCA took effect have secured authorization under the new regime. The rest either left the market, merged, or are still waiting. The report, released this week, points to early licensing capacity as the decisive factor.
The 20% figure
TRM's analysis covers the period since MiCA's full implementation. Of the firms that were active before the rules landed, just 20% received authorization. That's a steep drop, and it suggests the new framework is doing what it was designed to do: filter the market.
The report doesn't break down how many of the remaining 80% are still in the application pipeline versus those that simply walked away. But the headline number is stark. Four out of five pre-MiCA providers didn't make the cut.
Why early licensing mattered
The report notes that the largest number of authorized providers came from jurisdictions that built licensing capacity early. Those countries had the infrastructure in place to process applications quickly. Others lagged, and their firms paid the price.
It's a simple lesson, but one that played out unevenly across the bloc. Regulators that started preparing years ago were able to move applications through. The ones that waited until the last minute left their homegrown firms scrambling.
What MiCA changed
MiCA replaced a patchwork of national rules with a single EU-wide framework. That's a big shift. The report says the new regime tightened the existing patchwork, making it harder for firms to shop for the friendliest regulator.
Before MiCA, a company could set up in one member state and passport services across the bloc. Now the rules are uniform, and the authorization bar is higher. The result is a smaller, more compliant market.
The report doesn't say how many of the remaining 80% are still trying to get authorized, but it's clear the window is closing. Firms that haven't secured a license by now may have to wind down or find a partner.
