The European Union has released its first list of officially approved crypto firms under the new Markets in Crypto Assets (MiCA) framework. This is a big step forward in regulation, but two big names in the industry are not on the list. The first group of authorized entities did not include Binance, the world’s largest cryptocurrency exchange, or Tether, the company that issues the USDT stablecoin.
The omission has led to a lot of speculation in the digital asset world, with people wondering about compliance readiness, licensing delays, and possible operational effects in the EU. This month, the MiCA regulatory system went live. Its goal is to make crypto oversight the same in all EU member states. This marks the start of a new era of openness and responsibility for the industry.
A New Regulatory Era Leaves Big Names Behind
Under MiCA’s rules, crypto asset service providers are required to register with national regulators and adhere to strict regulations regarding consumer protection, anti-money laundering measures, maintaining sufficient capital, and transparency in their operations. So far, 29 companies have successfully registered, including well-known ones like Bitstamp and Kraken. However, the absence of Binance and Tether from the list of registered companies has raised concerns because both are significant players in the market.
This absence could be a sign that Binance is still struggling to comply with the rules in each country for its vast global operations. Binance supports MiCA and is working on compliance, but its lack of approval suggests that there are still regulatory issues. The situation with Tether is also being looked at closely, as the new rules put stablecoin issuers under even more scrutiny, with strict rules about reserves and audit transparency.
Both businesses have been careful in their responses. Binance released a statement saying that it is still committed to working with European regulators and that it plans to fully follow MiCA rules. Tether, on the other hand, hasn’t given a full answer yet. However, people in the industry think the company may need to make big changes to how it shares information to meet EU standards.
Implications for the Crypto Landscape in Europe
The launch of MiCA is expected to change the crypto market in Europe, and companies that don’t follow the rules may have to leave the market or cut back on their services. The approved list makes trading safer for users by giving them more legal options and making things clearer. For the companies that weren’t chosen, this is a wake-up call that they can’t count on regulatory goodwill without full openness.
As the EU keeps enforcing its rules, Binance and Tether will be in the spotlight to see if they can adapt to meet Europe’s new standards. If they can’t, they could lose ground in one of the world’s biggest economic zones.
Also read: Is Bit Digital’s Switch from Bitcoin to Ethereum a Wise Move or a Dangerous Bet?
