“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 completely transparent.”
Fazel nevertheless acknowledges that the new rules will be hardest for startups, because obtaining and maintaining a license requires significant capital.
“If there’s one segment I feel bad about, it’s the startup segment,” he said. “Innovation can suffer for companies that don’t have enough capital.”
Level playing field
For licensed exchanges, another question remains: can regulators apply the new rules to 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. “We will then be able to compete by offering better service to users.”
The European Securities and Markets Authority (ESMA) has said that companies serving EU customers without MiCA authorization are in breach of EU law and should stop offering these services. He also warned companies not to use “reverse solicitation” to continue serving European customers and 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.
