A significant forecast indicates that around 75% of virtual asset service providers (VASPs) registered in the EU before 2025 will struggle to meet the compliance requirements of the Markets in Crypto-Assets Regulation (MiCA) this year. This could mirror Estonia's experience when it introduced a crypto licensing system in 2017, which initially allowed for easy registration but later restricted numerous firms due to stricter regulations akin to MiCA. Currently, around 1,600 VASPs in Poland face similar challenges as they must comply with the new standards, requiring substantial financial resources and infrastructure, which smaller companies may lack. The cost of obtaining a MiCA license can reach as high as €30,000 to €80,000, which is an increase compared to earlier registration fees. Additionally, companies must meet complex requirements such as implementing AML/KYC measures and demonstrating data protection protocols. Without sufficient resources and proper expertise, many small businesses and startups may have to cease operations under the new rules, potentially leading to a significant reduction in the number of active VASPs in the EU.

Source 🔗