When the Markets in Crypto-Assets Regulation went fully live in late December 2024, sceptics predicted chaos. The compliance burden would be too heavy. The requirements too prescriptive. Innovation would flee to friendlier jurisdictions. One year later, the data tells a different story: MiCA is working, and Europe has established itself as the global benchmark for crypto regulation.
The Numbers Don't Lie
The Netherlands led the way, issuing four Crypto Asset Service Provider (CASP) licenses on day one and adding 14 more throughout 2025. Germany followed with aggressive licensing. Together, Dutch and German MiCA licenses account for nearly half of all EU authorisations.
More telling than the license count is who's applying. These aren't just crypto-native firms seeking legitimacy—traditional financial institutions are entering the market through MiCA's clear framework. Asset managers, payment processors, and banks that previously avoided crypto are now building compliant offerings.
The Passporting Revolution
MiCA's most powerful feature isn't any single requirement—it's passporting. A license issued in any EU member state is valid across all 27. For the first time, crypto service providers can operate throughout the European Economic Area with a single authorisation.
For market makers, passporting transforms European operations:
- Single compliance framework: Instead of navigating 27 different regulatory regimes, we operate under one harmonised ruleset.
- Unified liquidity pools: Passporting enables us to aggregate European liquidity rather than fragmenting it across jurisdictions.
- Simplified counterparty onboarding: European clients know exactly what regulatory protections apply, regardless of which member state they're in.
Stablecoin Standards Set the Tone
MiCA's stablecoin requirements came into effect six months before the full framework, giving the market time to adapt. The results have validated the approach: euro-denominated stablecoins now operate under clear reserve requirements, mandatory audits, and transparent disclosure rules.
Within days of full MiCA enforcement, a consortium of nine European banks announced plans for a euro-denominated stablecoin designed specifically for cross-border settlement within the EU. This isn't crypto companies trying to compete with banks—it's banks embracing crypto infrastructure under regulatory clarity.
Market Integrity Meets Market Depth
Critics worried that MiCA's market abuse provisions and AML requirements would constrain liquidity. The opposite has occurred. By establishing clear rules against manipulation and requiring comprehensive KYC/AML compliance, MiCA has made European crypto markets more attractive to institutional participants.
Institutional capital requires institutional protections. MiCA provides them. The result: deeper order books, tighter spreads, and more sophisticated counterparties entering European markets.
The Transatlantic Convergence
MiCA's success has accelerated US regulatory development. The GENIUS Act, signed in July, mirrors several MiCA provisions—particularly around stablecoin reserves and transparency requirements. Rather than a regulatory race to the bottom, we're seeing a race to clarity.
For global market makers, this convergence is ideal. Harmonised rules across the two largest crypto markets mean unified infrastructure, consistent compliance frameworks, and the ability to serve institutional clients with a coherent global offering.
What We've Learned
A year of MiCA has taught us that good regulation isn't the enemy of innovation—it's the foundation for institutional adoption. The jurisdictions that will thrive in crypto aren't those with no rules, but those with clear rules that sophisticated participants can build around.
LQD Markets obtained our MiCA authorisation in Q1 2025, positioning us to serve European institutional clients from day one of full implementation. As the framework matures and institutional adoption accelerates, our early investment in European compliance infrastructure becomes increasingly valuable.
Europe bet that regulatory clarity would attract rather than repel capital. One year later, that bet is paying off. For market makers committed to institutional-grade operations, MiCA isn't a burden—it's a competitive moat.