According to Barron's Weekly, the EU's first nationwide cryptocurrency regulation, MiCA, aims to unify regulation, but differences in enforcement among member states have led to loopholes for businesses. This regulation requires service providers to obtain licenses in order to operate legally in the European Union, and to meet standards such as anti money laundering, counter-terrorism financing, and IT security. After obtaining licenses, they can operate in the entire EU market, prompting companies to seek "lenient" member state authorizations. Crypto experts say that regulatory agencies in most MiCA licensing countries, such as Germany and the Netherlands, have high levels of integrity, but countries like Malta have been accused of hastily issuing licenses before the collective standards are officially implemented. The Chairman of the French Financial Market Authority stated that some products entered the market through MiCA passports, but the approval process was rushed. The EU securities regulatory agency ESMA has initiated a "peer review" of a member state.
The encryption platforms OKX and Gemini chose Malta as their foothold due to its earlier acceptance of applications. France has just issued its first MiCA license, which has been criticized for its lengthy and complex process. Some lawyers claim that the existence of "cheap approval" damages the reputation of enterprises, and the cost of obtaining licenses is high, making it difficult for many companies to complete. If the EU's regulation is inadequate, European cryptocurrency companies may be replaced by companies from the United States, Dubai, and other places, which may also trigger economic sovereignty issues.
