EU to Revise MiCA Amidst New Developments

Key Insights

• The European Commission is currently assessing the EU’s comprehensive crypto law, aw MiCA, to determine whether it should be revised.
• Key considerations include tokenization and the treatment of non-EU stablecoin issuers, as parliament points to gaps in DeFi and NFT regulations.
• The transitional period for Mhas iCA just ended, forcing o2,0002000 companies to cease operations in the EU.

The European Commission is seeking stakeholder comments as part of its plan to revise the Market in Crypto Assets (MiCA) regulations. Euronews reported this, citing anonymous sources, including a European Union (EU) diplomat.

The report claimed that the Commission opened consultations from May to September 30 to review the regulation. It wants to assess whether the comprehensive legislation can adequately address emerging developments, including tokenization.

EU Seeks Update to MiCA to Address Tokenization and Stablecoin Growth

According to the report, a key consideration in the review is how to address the growth of tokenization and non-EU stablecoin issuers. While MiCA, enacted in December 2024, is considered comprehensive by many, there are concerns that it does not address tokenized assets.

Tokenization of real-world assets has seen an explosion in the past year, with several crypto exchanges now offering tokenized securities.

Regulatory developments in other parts of the world, particularly in the US, have also influenced the move to review. The US passed the GENIUS Act on stablecoins in 2025, a milestone that boosted global adoption of stablecoins.

Although MiCA already regulates stablecoins, it is still unclear how the EU will treat non-EU stablecoin issuers operating in the region. There are concerns about how the law will apply to these issuers and stablecoins, which are primarily backed by US dollars.

Interestingly, the European Parliament appears supportive of Euro-denominated stablecoins and tokenized assets. In its report titled Digital Assets – Challenges for the Competitiveness and Integrity of the EU Financial System, it noted that regulated digital assets are key to the EU’s competitiveness.

However, the Parliament has also called for an assessment of gaps in MiCA regulations. They noted in the report that DeFi lending, staking, and non-fungible tokens are not addressed by MiCA

MiCA in Full Effects Blocks EU Access for Hundreds of Crypto Firms

Meanwhile, the move to revise MiCA is coming only a week after it became fully effective on July 1. The end of the transitional period for MiCA has meant that several crypto companies had to cease operations in the region on July 1.

According to reports, around 270 of the over 1,200 crypto companies previously operating under national licenses have obtained the MiCA License. This leaves out over 80% of crypto entities previously licensed.

Binance is the biggest name among those that did not get a license. The exchange has already stopped crypto trading in some parts of Europe, including France.

However, the sharp reduction in licensed entities under MiCA might not have much impact on trading activities. Crypto exchanges with MiCA licenses account for 83% of trading volume in Europe, according to Kaiko data.

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