Stablecoins
Post-MiCA Landscape: Europe's Crypto Market Shifts Toward Regulation
As Europe transitions to a regulated crypto market under the Markets in Crypto-Assets (MiCA) framework, the landscape is evolving rapidly. A recent analysis reveals that the licensed market is still taking shape, with a notable concentration of licenses among custody firms and banks.
According to BeInCrypto's review of the European Securities and Markets Authority (ESMA) register, as of August 12, 2026, there are 329 authorization entries representing 324 distinct legal entities. However, only 21 of these entities are permitted to operate trading venues, highlighting a narrow practical market despite the larger regulatory perimeter established by MiCA.
Circle has emerged as a dominant player, supplying approximately 92% of the MiCA-compliant stablecoin market. The transition from the previous Virtual Asset Service Provider (VASP) registrations to MiCA has proven challenging, with estimates suggesting that 75% to 90% of the prior market did not secure new licenses.
In a related development, OKX Europe has reported a significant influx of deposits from users migrating from unlicensed exchanges, with inflows surging roughly fivefold in the month leading up to the July 1, 2026, compliance deadline. This shift indicates a growing preference among traders for regulated platforms, as OKX's data shows that at peak activity, around 90% of deposits were from users leaving unregulated venues.
OKX's strategy included offering incentives such as deposit bonuses to attract new users, further emphasizing the competitive landscape as exchanges adapt to the new regulatory environment. As the market continues to evolve, the long-term impact of these regulatory changes on user behavior and market dynamics remains to be seen.
New Developments in Montenegro's Crypto Landscape
- Montenegro aims to become Europe's next crypto hub, promoting corporate tax rates between 9% and 15% and no VAT on crypto transactions.
- In February 2025, Montenegro amended its anti-money laundering law to establish a registration framework for crypto-asset service providers (CASPs), overseen by the Capital Market Authority.
- The framework includes eight categories of crypto services, such as exchanges and trading platforms.
- Draft virtual asset legislation is currently under public consultation, with a target adoption date set for 2026, aligning with the EU's Markets in Crypto-Assets regulation (MiCA).
- Experts suggest that the current AML-only framework may deter larger operators seeking comprehensive compliance guidelines.
- In 2022, Montenegro granted citizenship to Ethereum co-founder Vitalik Buterin to bolster its blockchain promotion efforts.
FAQ
What is the Markets in Crypto-Assets (MiCA) framework?
The Markets in Crypto-Assets (MiCA) framework is a regulatory framework established by the European Union to provide a comprehensive set of rules for crypto assets, aiming to enhance consumer protection, ensure market integrity, and foster innovation in the crypto market.
How many entities have received authorization under MiCA as of August 12, 2026?
As of August 12, 2026, there are 329 authorization entries representing 324 distinct legal entities registered under MiCA.
What percentage of the MiCA-compliant stablecoin market does Circle control?
Circle has emerged as a dominant player in the MiCA-compliant stablecoin market, supplying approximately 92% of it.
What trend has been observed regarding user deposits on OKX Europe?
OKX Europe has reported a significant influx of deposits from users migrating from unlicensed exchanges, with inflows surging roughly fivefold in the month leading up to the July 1, 2026, compliance deadline.
What challenges did the transition from VASP registrations to MiCA present?
The transition from the previous Virtual Asset Service Provider (VASP) registrations to MiCA has been challenging, with estimates suggesting that 75% to 90% of the prior market did not secure new licenses under the new regulatory framework.