The European Markets in Crypto-Assets (MiCA) regulation comes into full effect on July 1. Only under 60 companies have received licenses across the union, and many applicants are facing a long wait, leaving them in uncertainty.
Germany has emerged as a clear outlier. BaFin has issued around 18 Crypto Asset Service Provider (CASP) licenses, covering about 36% of all granted licenses. Authorities in other countries have been progressing much more slowly.
EU CRYPTO DEADLINE LOOMS – You've got just 2 weeks to move your funds! Only 14 exchanges are licensed to offer trading in Europe after July 1, 2026. MiCA regulation is wrapping up the transitional period. Unlicensed platforms need to stop servicing EU clients. Check out what EU crypto users… pic.twitter.com/6YuzekS5kw
— BeInCrypto (@beincrypto) June 16, 2026
The regulatory bottleneck is worsening as the July deadline approaches.
Industry advisors are now estimating the realistic timeline for the MiCA licensing process to be 8-12 months from application submission to approval. In France, Ireland, and Malta, authorities have struggled to clear backlogs. These backlogs started forming as soon as the regulation came into effect on December 30, 2024.
France's AMF has issued a final warning to companies still operating without a license. The agency noted that many applications require significant reprocessing, and poor-quality documents are slowing down approvals.
About 30% of French crypto companies had not submitted applications by the end of 2025.
The situation in Lithuania is similar. Less than 10% of registered companies have applied for a license from the Lietuvos Bankas, totaling around 30 firms. The central bank has threatened fines, website blocking, and potential criminal complaints against those who delay.
The European Securities and Markets Authority (ESMA) increased pressure last summer. It conducted a peer review of Malta's MFSA in July 2025 and found that the authority did not meet the requirements for CASP licensing processes. The recommendations apply to all national competent authorities across the EEA.
ESMA highlighted deficiencies particularly in assessing business models, conflicts of interest, and ICT architecture. The authority urged national regulators to review compliance with the Digital Operational Resilience Act (DORA) during the licensing process.
Germany is setting the standard.
Germany has shortened its transition period to 12 months, ending on December 31, 2025. This tighter window forced companies to submit applications to BaFin earlier. In just the fourth quarter, 16 new MiCA licenses were granted.
In January, DZ Bank received a MiCA license. The second-largest bank in Germany intends to launch the meinKrypto platform for retail investors. The approval reflects BaFin's effective approach to handling applications from established banks. The authority also rejected Ethenan's USDe stablecoin application last year.
Critics argue that Germany is applying the MiCA regulation more strictly than the regulation itself requires. This has driven exchanges like Bybit, KuCoin, and AMINA to relocate their operations to Austria. The compliance costs, ranging from €250,000 to €500,000, have particularly burdened smaller firms.
Despite the criticism, BaFin's swift actions give Germany an edge in passporting opportunities. Licensed companies can now serve clients across all 27 member states.
Slower-moving authorities are essentially ceding cross-border business to competitors under German supervision. The 36% share is significantly higher than in the Netherlands and Malta, which are the next largest issuers of licenses.
There are about two weeks left before July 1. The gap between Germany and slower national authorities will determine which CASP companies can offer services across the EU.
The coming weeks will show how many applicants the slowest authorities can approve before the transition ends.