- Gate Europe CEO says a MiCA license alone may not ensure long-term survival for crypto firms.
- Customers are adapting to MiCA rules as firms navigate Travel Rule and compliance changes.
- MiCA boosts institutional confidence but higher compliance costs may reshape Europe’s crypto market.
Europe’s crypto market is entering a new phase following the implementation of the Markets in Crypto-Assets (MiCA) framework, but obtaining a license may not be enough to ensure long-term success.
According to Gate Europe CEO Giovanni Cunti, the new regulatory environment has created a more unified market for compliant firms while also introducing operating costs and compliance obligations that could challenge some licensed companies over time.
Speaking during an interview, Cunti said the transition has strengthened institutional confidence, though businesses and customers are still adapting to the new rules that took effect across the European Union.
Institutions Respond to Harmonized Rules
Cunti said the July 1 implementation of MiCA achieved its primary objective of harmonizing crypto regulation across the European Union. Instead of operating under separate national frameworks, licensed firms can now serve the broader European market under a common regulatory structure.
He said the framework has raised credibility among institutional participants by introducing uniform requirements governing customer verification, asset handling, and operational standards. While acknowledging that the rules require additional customer checks, he said those measures were created to strengthen the protection of client assets and create uniform safeguards across the region.
According to Cunti, institutions have focused on asset security, operational reliability, fast execution, API connectivity, and account management features as they evaluate service providers under the new regime.
Transition Continues for Companies and Customers
The executive said the first weeks after the deadline were marked by uncertainty as customers sought clarification about exchanges that could no longer operate within Europe. He noted that many users contacted customer support to understand what would happen to their assets before gradually becoming familiar with the migration process.
Cunti also said the industry continues to face an educational challenge, particularly regarding the Travel Rule, which requires additional information to accompany crypto transfers. He added that both customers and newer market participants still need time to adjust to the regulatory framework.
Compliance Costs Could Change the Market
Although some companies successfully secured MiCA licenses, Cunti said compliance alone may not guarantee long-term viability. He stated that the resources and capital required to sustain operations under the new framework could be a challenge for some licensed firms over time.
He also said the higher cost of entering the regulated market may reduce opportunities for new startups. According to Cunti, some founders could consider jurisdictions with lower compliance requirements if they seek greater flexibility for innovation, while discussions about decentralized finance regulation continue between European authorities and regulators in Malta.
Related: MiCA Licensing Advances Unevenly Across Europe: Germany Leads with 57 Approvals
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