75% of VASPs registered in the EU will not be able to comply with MiCA

Opinion by: Slava Demchuk, co-founder and CEO of AMLBot

All virtual plus work providers (VASPs) registered successful the EU earlier 2025 indispensable comply with Markets successful Crypto-Assets Regulation (MiCA) requirements this year. Not each volition beryllium capable to bash so. 

The MiCA regularisation is, successful essence, a bully ineligible model for the crypto industry, but it besides has immoderate disadvantages, particularly for crypto startups and tiny businesses. 

Looking astatine the lawsuit of Estonia and its implementation of crypto licenses successful 2017, it is imaginable to foretell that astir 75% of VASPs volition request to cease their operations successful the EU. 

What happened successful Estonia with crypto licenses? 

In 2017, Estonia was 1 of the archetypal EU subordinate states to present a crypto licensing process. Getting a crypto licence (a VASP registration) was casual and fast. No carnal presence, stock superior requirement, oregon impervious of having dependable Anti-Money Laundering (AML) and Know Your Customer (KYC) systems successful spot were required. The result? By 2019, Estonia had issued astir 2,000 crypto licenses. 

Starting successful 2019, however, Estonia adopted respective amendments to the law, incorporating requirements akin to MiCA. As a consequence, the bulk of licensed crypto companies were not capable to comply with caller requirements and mislaid their licenses. Today, Estonia has lone astir 45 licensed crypto businesses.

Current concern successful the EU with VASP registration

Similar situations volition hap successful countries with airy VASP registration requirements, specified arsenic Poland and the Czech Republic. There are astir 1,600 VASPs registered successful Poland, owing to the casual and accelerated process of registering successful the state earlier the MiCA implementation. With minimal requirements, 1 tin unfastened a institution and person a VASP registration successful these countries wrong a fewer weeks. 

These licensing processes wholly changed successful 2025 erstwhile MiCA entered afloat into force. All the registered VASPs indispensable comply with caller requirements, which volition beryllium the aforesaid careless of their state of incorporation; otherwise, they volition beryllium required to cease their business. 

Recent: 10 stablecoin issuers approved nether EU’s MiCA — Tether is near out

Most of them volition not beryllium capable to comply, based connected erstwhile experience, specified arsenic erstwhile 1,900 companies mislaid their VASP registrations successful Estonia. Those licence losses occurred arsenic a effect of respective cardinal factors: 

• Their size: Many registered VASPs were one-to-three-person companies that provided indispensable speech successful p2p platforms oregon over-the-counter. They volition not person capable resources to comply with strict MiCA requirements.

• The cost: Acquiring a MiCA licence is expensive. It was antecedently imaginable to receive VASP registration successful Poland oregon the Czech Republic for 2,000-4,000 euros. The terms for a MiCA licence is overmuch much than that, typically astir 30,000-80,000 euros, depending connected the concern exemplary and state of incorporation.

• The requirements: Companies that use for a MiCA licence indispensable beryllium they person galore analyzable processes successful place, including but not constricted to AML/KYC, information extortion and cyber resilience. Therefore, the institution indispensable prosecute galore specialists and physique galore processes. Based connected the fig of VASPs registered successful Poland, those 1,600 VASPs volition request to find 1,600 AML/compliance officers (one per VASP) by July 2025 — erstwhile each VASPs successful Poland shall comply with MiCA — that person applicable knowledge, expertise and walk the fit-and-proper test. This volition beryllium astir impossible.

In addition, MiCA has precocious stock superior requirements ranging from 50,000 to 150,000 euros, depending connected the services a institution provides. Many presently registered VASPs are startups oregon tiny companies whose gross volition not beryllium capable to screen each the costs needed to physique the processes mentioned supra and fulfill the stock superior requirements. 

Where does that permission the tiny businesses and the startups? They volition not beryllium equipped to comply with MiCA.

Opinion by: Slava Demchuk, co-founder and CEO of AMLBot.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.