More MiCA-licensed crypto firms could exit EU market: Gate Europe CEO

Gate Europe’s Giovanni Cunti says some MiCA-licensed crypto firms may struggle to sustain compliance costs as Europe enters its new regulatory era.

Crypto companies already licensed under the European Union’s Markets in Crypto-Assets Regulation (MiCA) could still exit the market as compliance costs mount, according to Gate Europe’s CEO.

Giovanni Cunti told Cointelegraph’s Chain Reaction on Monday that stricter regulatory requirements have made it increasingly difficult for new entrants to compete and that some licensed firms could ultimately be unable to absorb the ongoing costs of operating under the framework.

“I think there are going to be quite a few more of the ones that acquire MiCA license that will not be capable to sustain the cost and the resources that are needed to carry on this business in the long term,” Cunti said.