EU Grants MiCA Licenses to 53 Crypto Firms, Excludes Tether and Binance

The European Union has granted MiCA licenses to 53 crypto companies, enabling them to operate across the 30 countries of the European Economic Area (EEA) under a unified regulatory framework. This development marks a significant milestone in the EU's efforts to regulate the crypto sector and enhance consumer protection, transparency, and market integrity. The approved firms include 14 stablecoin issuers and 39 crypto-asset service providers (CASPs), but notably absent from the list are prominent players Tether and Binance.

The MiCA regulation, which went into full effect on December 30, 2024, allows these companies to provide their services across the EU without the need for local licenses. This regulatory framework promotes the EU's agenda of regulating the crypto sector and boosting consumer protection, transparency, and market integrity. The approved stablecoins cover multiple fiat currencies, enhancing diversity in the EU market. The licenses indicate that the capital, governance, and disclosure requirements of MiCA have been met.

Several prominent crypto platforms, including Coinbase, Kraken, Bitstamp, N26, OKX, Robinhood, Trade Republic, and BBVA, have been granted licenses to operate within the CASP. Germany and the Netherlands have issued the highest number of licenses, with 12 and 11 firms, respectively. France, Germany, and the Netherlands also control the approval of stablecoin issuance.

The absence of Tether and Binance from the list of approved licenses raises questions about their future in the European market. Tether, the issuer of the largest stablecoin USDT, has been delisted from several EU exchanges such as Coinbase and Crypto.com due to its non-compliance with MiCA's requirements. MiCA mandates that major stablecoins hold at least 60% of their reserves in EU-based banks and requires full transparency through regular disclosures and audits, which Tether has not met.

Binance, the most traded crypto exchange, is also absent from the list as it continues to face regulatory pressure in Europe. Despite hiring Gillian Lynch as its head of Europe and the UK to enhance its compliance activities, Binance has not obtained MiCA approval to conduct business within the EU legally. The departure of these two giants from the EU market casts doubts over their future in the region as the enforcement of MiCA increases.