“A MiCA license is not something you can buy because you have money and power,” he said. “It ensures that every process is completely transparent.”
Still, Fazel acknowledged that the new rules will be most difficult for startups because it requires significant capital to obtain and maintain a license.
“If there’s one segment I feel bad about, it’s startups,” he said. “Innovation suffers for companies that don’t have enough capital.”
Uniform rules of the game
For licensed exchanges, another question remains: whether regulators can enforce the new rules against companies operating outside the EU.
Lin Han, founder and CEO of Gate Group, said licensed exchanges have spent years preparing for MiCA, but the framework only works if everyone follows it.
“Everyone must follow the rule,” Han said. “Then we can compete on better service for users.”
The European Securities and Markets Authority (ESMA) has said that firms serving EU clients without a MiCA license are in breach of EU law and should stop offering these services. It has also warned companies not to rely on “reverse request” to continue serving European customers and has called for measures such as geo-blocking to prevent access.
He questioned whether regulators have the resources to prevent unlicensed platforms from continuing to operate from abroad.
