Europe's MiCA rollout sparks debate over who wins under new crypto rules

“A MiCA license is not something you can buy because you have money and power,” he said. “It is making sure every process is fully transparent.”

Still, Fazel acknowledged the new rules will be hardest on startups because obtaining and maintaining a license requires significant capital.

“If there's one segment I feel bad for, it's startups,” he said. “Innovation may suffer for companies that don't have enough capital.”

A level playing field

For licensed exchanges, another question remains: whether regulators can enforce the new rules against firms operating outside the European Union.

Dr. Lin Han, founder and CEO of Gate Group, said licensed exchanges have spent years preparing for MiCA, but the framework only works if everyone follows it.

The European Securities and Markets Authority (ESMA) has said firms serving EU clients without MiCA authorization are breaching EU law and should stop offering those services. It has also warned firms not to rely on “reverse solicitation” to continue serving European customers and has encouraged measures such as geo-blocking to prevent access.

Han questioned whether regulators have the resources to prevent unlicensed platforms from continuing to operate from overseas.