Europe’s Markets in Crypto-Assets (MiCA) regime fully takes effect on July 1. Fewer than 60 firms hold a license across the bloc, while a backlog leaves many applicants in limbo.
Germany has emerged as the clear outlier. BaFin has authorized roughly 18 Crypto Asset Service Providers (CASPs), accounting for about 36% of all licenses issued. Other national regulators have moved at a fraction of that pace.
Regulatory Bottleneck Mounts as July Deadline Approaches
Industry advisers now describe a realistic MiCA timeline of 8 to 12 months from submission to authorization. Regulators across France, Ireland, and Malta have struggled to clear queues. These queues have built up since the regime took effect on December 30, 2024.
France’s AMF has issued a final warning to firms still operating without a license. The agency said many applications require significant rework, and poor documentation quality is slowing approvals.
Roughly 30% of French crypto firms had still not filed as of late 2025.
Lithuania shows a similar picture. Fewer than 10% of registered firms have applied to Lietuvos Bankas, roughly 30 companies in total. The central bank has signaled fines, website blocks, and possible criminal referrals for stragglers.
The European Securities and Markets Authority (ESMA) added pressure last summer. It’s peer review of Malta’s MFSA, back in July 2025, found that the regulator fell short in a CASP authorization. The recommendations apply to every national competent authority across the EEA.
ESMA’s findings also flagged business model assessments, conflicts of interest, and ICT architecture as areas of weakness. The regulator urged NCAs to review compliance with the Digital Operational Resilience Act (DORA) during the authorization process.
Germany Sets the Pace
Germany cut its grandfathering window to 12 months, closing on December 31, 2025. The shorter runway forced firms to file earlier with BaFin. The regulator added 16 new MiCA-licensed institutions in the fourth quarter alone.
In January, DZ Bank secured a MiCA license. Germany’s second-largest lender will use it to launch the meinKrypto retail trading platform. The approval reflects how aggressively BaFin processes applications from incumbent banks. The regulator also rejected Ethena’s USDe stablecoin filing last year.
Critics argue that Germany applies MiCA more strictly than the regulation requires. The approach has pushed exchanges, including Bybit, KuCoin, and AMINA, to base operations in Austria. Compliance costs of €250,000 to €500,000 have also weighed on smaller firms.
Despite the criticism, BaFin’s pace gives Germany a passporting advantage. Licensed firms can now serve clients across all 27 member states.
Slower regulators effectively cede that cross-border business to German-supervised competitors. The 36% share far outstrips the Netherlands and Malta, the next-largest issuers.
About two weeks remain before the July 1 transition expires. The gap between Germany and slower NCAs will determine which CASPs can passport services across the EU.
The coming weeks will show how many applicants the laggards can clear before the cliff edge.
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