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Europe’s MiCA law is motion, but can the crypto industry keep up?

The European Union’s Markets in Crypto-Assets regulation — better known as MiCA — is now in its critical implementation phase. Designed to unify crypto regulation across all 27 EU member states, MiCA promises clarity, consumer protection and long-term market stability. But as implementation begins, cracks are already showing.

In this week’s episode of Byte-Sized Insight, we explore the key provisions of MiCA now in force, particularly around stablecoins, and why some of the largest players in the market are refusing to comply.

As of January 2025, crypto asset service providers (CASPs) began acquiring licenses to operate legally within the EU. A transitional or “grandfathering” period allows existing firms up to 18 months, depending on the member state, to comply. Still, with deadlines approaching, firms are being forced to act quickly.

Stablecoins at bay

One of MiCA’s earliest and most controversial provisions involves stablecoins. Under the law, no stablecoin can be offered to EU users unless the issuer is authorized in the EU and publishes a regulator-approved white paper.

Strict rules around asset reserves, governance, conflict of interest and marketing are also part of the package. Issuers are even banned from offering interest on tokens, removing a common incentive for adoption.

Related: Stablecoin regulation next ‘catalyst’ for crypto industry — Aptos head

The world’s most-used stablecoin — Tether’s USDt (USDT) — has already announced it won’t seek MiCA compliance, meaning exchanges may soon be forced to delist it across the EU. This has major implications for liquidity, retail access and DeFi activity in the region.

Tether CEO Paolo Ardoino told Cointelegraph’s Gareth Jenkinson at Token 2049:

“The reason is not, uh, fear of regulations, fear of compliance… The problem that I had with um, with MiCA is that [the] license is very dangerous when it comes to stablecoins and I believe that it’s even more dangerous for the small medium banking system in Europe.”

Compliance is key

On the flip side, other firms are leaning in. BitGo, a crypto custody firm, recently secured a MiCA-aligned license in Germany, positioning itself to serve institutional players across Europe. 

Brett Reeves, head of Go Network and European Sales at BitGo, told Cointelegraph the license is not just about compliance, but long-term strategic alignment with Europe’s evolving regulatory landscape.

“We found that both BaFin and the European regulators have been relatively straightforward to deal with. Sometimes they have difficult questions, but they’re there to make sure that our processes are in place and up to scratch.”

We also spoke with Erwin Voloder, head of policy at the European Blockchain Association, who emphasized the need for consistent national-level interpretation and better guidance from regulators to prevent fragmentation.

Europe, European Union, MiCA

Listen to the full episode of Byte-Sized Insight for the complete interview on Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. And don’t forget to check out Cointelegraph’s full lineup of other shows! 

Magazine: Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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‘Scam of all scams’: Crypto dev claims Trump-linked WLFI ‘stole’ his money

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‘Scam of all scams’: Crypto dev claims Trump-linked WLFI ‘stole’ his money

‘Scam of all scams’: Crypto dev claims Trump-linked WLFI ‘stole’ his money

A crypto developer says Trump-linked crypto project WLFI froze his tokens and refused to unlock them, calling it “the new age mafia.”

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Farage confirms he wants to deport women asylum seekers back to Taliban in Afghanistan

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Farage confirms he wants to deport women asylum seekers back to Taliban in Afghanistan

Nigel Farage has confirmed he wants to deport women asylum seekers back to the Taliban in Afghanistan if he becomes prime minister.

The Reform UK leader’s position on the topic has not been clear, with him previously saying he would send women back to the fundamentalist regime that took over after western militaries withdrew, before now saying he would.

Mr Farage was speaking to Sky News’ political editor Beth Rigby at the Reform UK party conference in Birmingham.

Politics live: Govt responds to Farage wanting early election

When asked if he would “detain” women and children and “send them back”, the Clacton MP said “yes”.

Challenged on when he said in August that he was not “discussing” women and children, Mr Farage claimed this was a reference to his desire to seeing men detained on arrival in the UK.

At the time he said he was “very, very clear” on the “deportation of illegal immigrants”, adding: “We are not even discussing women and children at this stage – there are so many illegal males in Britain, and the news reports that said that after my conference yesterday were wrong”

More on Migrant Crossings

Speaking today, Mr Farage claimed that the UK has a “duty of care” if a four-year-old arrives in a dinghy, for example – but not so for women and men.

“For clarity, those that cross the English Channel will be detained and deported, men and women,” Mr Farage went on.

“Children, we’ll have to think about.”

The Reform leader also rowed back on his pledge to stop all boats within two weeks if he is elected prime minister.

Speaking to the conference yesterday, Mr Farage said: “You cannot come here illegally and stay – we will stop the boats within two weeks of winning government.”

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Watch Farage face questions on his tax affairs

But speaking to Beth Rigby today, he changed tack – saying “the passing of legislation” would be required.

He said the boats would then be stopped within two weeks, or sooner.

In the interview with Rigby, Mr Farage tried to claim he did not say he would end the boats within two weeks of “winning government”.

But the video of his speech, as well as the transcript released by Reform UK, clearly show him saying: “We will stop the boats within two weeks of winning government.”

When asked why he wouldn’t be able to stop the boats within two weeks of winning government, Mr Farage said it was impossible and “no one” can prevent them crossing the Channel.

The Reform UK leader said the law he wants to introduce will be called the Illegal Migration Act once it is passed by parliament.

He confirmed his agenda includes leaving the European Convention on Human Rights, shutting down asylum hotels and housing people at RAF bases instead, as well as deporting Channel migrants.

Mr Farage also claimed that deportation flights would also begin within two weeks of the law changing, and this combination of factors would stop people from wanting to travel from France.

This strategy all depends on Reform UK winning the next general election – which Labour does not have to call until 2029.

However, Mr Farage says he believes the government will collapse in 2027 due to economic pressure and other factors.

Reform are currently well clear of Labour and the Conservatives in the polling, and are targeting next year’s Welsh, Scottish and English local election to try and win more power in councils and national assemblies.

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Senate crypto bill adds clause to keep tokenized stocks as securities

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Senate crypto bill adds clause to keep tokenized stocks as securities

Senate crypto bill adds clause to keep tokenized stocks as securities

The US Senate has added a provision to its crypto bill confirming that tokenized stocks remain securities, preserving their fit within existing financial frameworks.

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