Crypto Firms Turn to Dubai as EU Grants Only 244 MiCA Licenses Ahead of Deadline

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Varinder is a seasoned leader in the fintech and crypto media with over 12 years of experience, including over 6 years dedicated to blockchain, crypto, and Web3 developments. He is known for covering high-impact and quality news stories for publishers such as CoinGape, The Coin Republic, and The Crypto Times, while perfecting and training multiple journalists during his tenure. Being a Master of Technology degree holder, analytics thinker, and tech enthusiast, he has shared his knowledge of disruptive technologies in over 6000 news articles and papers.

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Crypto Firms Turn to Dubai as EU Grants Only 244 MiCA Licenses Ahead of Transition Deadline

Highlights

Crypto firms are seeking expansion to the UAE, particularly Dubai, amid MiCA transition deadline.
244 crypto firms secured MiCA license in EU bloc from almost 3000 firms.
Binance, Bitget, MEXC, and others are no longer authorize to serve EEA region users.

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Crypto firms that failed to secure licenses under the EU’s Markets in Crypto Assets (MiCA) regulation are considering expansion to the UAE. Only a few crypto firms among 3,000 have received full licenses to continue serving clients across the EU, with some already restricting crypto services ahead of the transition deadline.

EU’s MiCA Transition Deadline Pushes Crypto Firms Towards the UAE

Only 244 crypto-asset service providers (CASPs) have secured full licenses under the EU’s landmark Markets in Crypto-Assets (MiCA) regulation. With the July 1 transition deadline approaching, crypto founders and firms are exploring the UAE, particularly Dubai.

Irina Heaver, a lawyer at NeosLegal in Dubai, said her law firm now receives more than 120 inquiries a week from European companies and founders. It surged amid rising costs, timing and uncertainty of securing a MiCA license.

“They’re looking to move themselves and their wealth and their ideas and their intellectual potential to a country that welcomes them.”

Notably, Germany leads with 57 licenses, and France is second with 26, accounting for more than one-third of the total licenses issued to crypto firms. Meanwhile, Greece, Hungary, Poland, Portugal, and Romania have not issued any MiCA licenses. Among leading crypto firms, Coinbase and Ripple have secured MiCA compliance.

Crypto Exchanges and Firms Face Roadblock in EU

Binance, Bitget, MEXC, and other crypto firms are no longer authorized to serve EU users, with trading and deposits set to stop. As CoinGape reported earlier, Binance faced a roadblock in securing its MiCA license in Greece after ECB President Christine Lagarde intervened.

Changpeng Zhao revealed that Binance was close to receiving the MiCA license in Greece. However, the crypto exchange claimed it is seeking a license in France for full MiCA compliance.

Notably, Bybit has started restricting some crypto services for EEA users. The crypto exchange said users will receive additional notices over the move as part of its regulatory alignment.

Meanwhile, Dubai’s Virtual Assets Regulatory Authority (VARA) has issued its 50th license. It awarded the 50th crypto license to the tokenized assets platform Tribe Tokenisation.

In related news to rising demand for tokenization, Securitize received approval for a SPAC merger and listing on the NYSE under the ticker ‘SECZ’ on Thursday. It will become the first publicly traded tokenization platform.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.