A single market worth protecting: Getting the MiCA review right — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- European Commission consultation on MiCA's review closes Sept. 30, framing the central question as whether market-access obligations remain proportionate to the single market they unlock.
- MiCA grants authorized Crypto-Asset Service Providers (CASPs) access to the entire EU single market in exchange for a more demanding authorization and compliance framework.
- CASP compliance costs have risen significantly under MiCA, with overhead falling hardest on smaller firms and newer entrants that drive competition and innovation, the piece argues.
- Digital asset businesses are unusually mobile, and the analysis warns they may redirect new investment to jurisdictions offering comparable market access at lower regulatory friction.
- The analysis applies a proportionality test to every MiCA requirement — retaining rules that address clear and material risk while simplifying or removing those that do not.
- The piece explicitly rejects deregulation, calling instead for the review to simplify, streamline, or remove rules that lack clear risk-based justification.
Why it matters: Smaller crypto firms and EU innovators bear the heaviest MiCA compliance overhead. If the September review adds regulatory burden without risk-based justification, the source warns of a smaller European crypto market — less innovation, fewer firms, and supervisors overseeing a reduced share of global activity as mobile firms relocate to lower-friction jurisdictions.
Ask SkimNews
