“A MiCA license is not something you can buy because you have money and power,” he said. “It’s about ensuring that every process is fully transparent.”
Still, Fazel acknowledged that the new rules will be more difficult for startups because obtaining and maintaining a license requires significant capital.
“If there is a segment that I feel bad about, it is startups,” he said. “Innovation can suffer for companies that do not have enough capital.”
A level playing field
For licensed exchanges, another question remains: whether regulators can enforce the new rules against companies operating outside the European Union.
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 in better service for users.”
The European Securities and Markets Authority (ESMA) has said that companies providing services to EU clients without MiCA authorization are violating EU law and should stop offering those services. It has also warned companies not to rely on “reverse requesting” to continue serving European customers and has encouraged measures such as geo-blocking to prevent access.
Han questioned whether regulators have the resources to prevent unlicensed platforms from continuing to operate from abroad.
