Europe's cryptocurrency regulation is entering a new phase, and many crypto companies are beginning to look elsewhere. Although the transition period for the Markets in Crypto-Assets (MiCA) regulation is coming to an end, only a small fraction of firms have secured full authorization to operate across the European Union. As a result, interest in relocating to the United Arab Emirates, particularly Dubai, is rapidly increasing as the city strengthens its position as one of the world's leading crypto hubs.
Law firms and industry consultants report that the number of European crypto businesses considering a move out of the EU has surged in recent weeks.
Only a Small Fraction of Companies Have Secured MiCA Licenses
Out of more than 3,000 Crypto-Asset Service Providers (CASPs), only 244 companies have obtained full MiCA licenses. With the July 1 transition deadline approaching, many firms are facing mounting pressure to comply.
According to Irina Heaver, a lawyer at Dubai-based NeosLegal, her firm is now receiving more than 120 inquiries every week from European founders and crypto businesses.
The growing interest is being driven not only by the high cost of complying with MiCA but also by uncertainty surrounding the licensing process and approval timelines.
Heaver says many entrepreneurs are no longer looking to relocate only their companies—they are also considering moving their capital, talent, and intellectual property to jurisdictions that offer a more welcoming environment for digital asset businesses.
Several EU Countries Have Yet to Issue a Single License
Germany has emerged as the clear leader in MiCA approvals, issuing 57 licenses, while France ranks second with 26 licenses. Together, the two countries account for more than one-third of all MiCA authorizations granted so far.
Meanwhile, Greece, Hungary, Poland, Portugal, and Romania have not issued a single full MiCA license.
Among the major industry players, Coinbase and Ripple have already secured MiCA compliance, while many other exchanges continue waiting for regulatory approval.
Exchanges Begin Restricting Services Across Europe
Several cryptocurrency platforms have already started adapting to the new regulatory framework.
Exchanges including Binance, Bitget, and MEXC are gradually adjusting their services for European customers, with some restricting trading or deposits until they receive the required regulatory approvals.
According to available information, Binance continues pursuing a MiCA license, with France currently serving as its primary regulatory focus.
Meanwhile, Bybit has announced that it will progressively limit certain services for users within the European Economic Area (EEA) as part of its efforts to comply with MiCA regulations.
Dubai Continues to Strengthen Its Position as a Global Crypto Hub
While Europe tightens its regulatory framework, Dubai is moving in the opposite direction.
The city's Virtual Assets Regulatory Authority (VARA) recently issued its 50th crypto license, awarding it to real-world asset tokenization platform Tribe Tokenisation.
At the same time, investor interest in tokenization continues to grow. Securitize recently received approval to merge with a SPAC and plans to list on the New York Stock Exchange (NYSE) under the ticker symbol SECZ.
If completed, the transaction will make Securitize the world's first publicly traded company focused exclusively on asset tokenization.
An increasing number of analysts believe this highlights a growing divide within the global crypto industry. While the European Union is implementing one of the world's most comprehensive regulatory frameworks for digital assets, jurisdictions such as Dubai are attracting blockchain companies with faster licensing procedures, greater regulatory clarity, and a more business-friendly environment. This shift could significantly reshape the global cryptocurrency landscape in the years ahead.
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