The EU's Markets in Crypto-Assets regulation (MiCA) reached its one-year anniversary in full effect. The framework — the world's most comprehensive crypto regulation — has reshaped how exchanges operate in Europe, effectively banned USDT from payment use, and created a new class of compliant euro-denominated stablecoins. We review what worked, what didn't, and what's still unclear.

Who got licensed — and who didn't

As of May 2026, 42 Crypto Asset Service Providers (CASPs) hold full MiCA licenses issued by national competent authorities (NCAs) across the EU. The licenses confer passporting rights — a company licensed in France can serve customers in all 27 EU member states. The top licensing hubs are Germany (11 licenses), France (9), and the Netherlands (8).

Major exchange MiCA license status

ExchangeStatusNCAPassported
Coinbase✓ LicensedAMF (France)Yes
Kraken✓ LicensedBaFin (Germany)Yes
Binance✓ LicensedCSSF (Luxembourg)Yes
OKX✓ LicensedCBI (Malta)Yes
Bybit⏳ Pending—No
Modern European financial district buildings and architecture
The EU MiCA framework created a single licensing passport across all 27 member states — eliminating the previous patchwork of 27 different national crypto regulations.

The USDT situation: a de facto ban

MiCA's stablecoin provisions require any stablecoin with over €200M in daily transaction volume to be issued by an EU-authorized entity with EBA oversight. Tether's USDT — the world's largest stablecoin — is not issued by an EU entity and has not sought authorization. Major EU exchanges have removed USDT trading pairs. The beneficiary has been Circle's EURC (euro-pegged), which grew from €400M to €2.1B in supply over the past year, and USDC which maintained its EU position through Circle's French authorization.

DeFi: the exemption that survived

After industry lobbying and ESMA consultation, decentralized protocols with no identifiable issuer or service provider remain fully exempt from MiCA. The ESMA guidance published in March 2026 confirmed: Uniswap, Aave, Curve, and similar protocols are not CASPs. This was the outcome the DeFi industry was hoping for — though the guidance notes that "the evolution of DeFi governance structures will be monitored closely."

"MiCA is imperfect but it's a framework. Compared to the regulatory vacuum of 2020-2023, European crypto businesses now know exactly what they need to do. That certainty has real value."— Patrick Hansen, Circle EU Policy Director