The European Union has made a significant stride to control the crypto sector, formally licensing 53 digital assets companies as part of its Markets in Crypto-Assets (MiCA) laws. The step is a milestone in cementing a harmonized regime of crypto services in the European Economic Area (EEA). The adoption of MiCA is expected to help harmonize regulations concerning crypto trading, custody, and issuing stablecoins while facilitating stability in the market and consumer protection. 

Nevertheless, despite the inclusion of key firms like Coinbase, Kraken, and Bitstamp, giants like Binance and Tether, are missing on the list. Their inability to pass the strict licensing criteria set by the EU, especially in areas of transparency, governance, and auditing, has raised concerns over what will happen to them in the European market. The two firms have been on the receiving end of regulatory scrutiny previously, and MICA aggressive action now threatens their business in the entire region.

A Closer Look at the MiCA Milestone 

As per a report shared on X by Patrick Hansen, the EU Strategy and Policy Lead at Circle, the EU has approved 39 crypto-asset service providers (CASPs), and 14 stablecoin issuers under the MiCa laws. The licenses allow companies to practice in all 30 EEA countries without obtaining individual authorizations in each area – a huge benefit in what otherwise would be a patchwork of regulatory systems. 

𝐌𝐢𝐂𝐀 6-𝐌𝐨𝐧𝐭𝐡𝐬 𝐒𝐭𝐚𝐭𝐮𝐬 𝐔𝐩𝐝𝐚𝐭𝐞: 𝐅𝐮𝐥𝐥 𝐋𝐢𝐬𝐭 𝐨𝐟 𝐀𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐞𝐝 𝐒𝐭𝐚𝐛𝐥𝐞𝐜𝐨𝐢𝐧 𝐈𝐬𝐬𝐮𝐞𝐫𝐬 & 𝐂𝐫𝐲𝐩𝐭𝐨-𝐀𝐬𝐬𝐞𝐭 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 𝐏𝐫𝐨𝐯𝐢𝐝𝐞𝐫𝐬 🇪🇺

6 months into MiCA’s application for CASPs — and 12 months for stablecoins — here’s… pic.twitter.com/5mZwOg30qq

— Patrick Hansen (@paddi_hansen) July 7, 2025

France, Germany, and the Netherlands lead in stablecoin issuance, accounting for 9 of the 14 approved issuers. Twenty fiat-backed stablecoins – mainly euro and dollar-denominated – have been registered under MiCA so far, expanding the region’s pool of compliant digital currencies.

On the CASP side, Germany and the Netherlands again stand out, representing nearly 60% of the licensed providers. Well-known crypto exchanges like OKX, Bitstamp, and Kraken have successfully met MiCA requirements, as have fintech firms such as Robinhood and Trade Republic. Even traditional banking players like Spain’s BBVA have jumped into the mix, demonstrating the growing convergence of crypto and conventional finance.

Tether’s Ongoing Audit Problems Stalls EU Licensing

The elimination of Tether in the MiCA list serves as an indication of its continuing transparency problem. Tether, the issuer of USDT the world largest stablecoin by market capitalization, has long been accused of not releasing a full and independent audit of its reserves. Consumer advocacy group Consumers Research recently slammed the company for breaking its years-long promise to provide such an audit.

In response, Tether CEO Paolo Ardoino cited difficulties in securing a top-tier audit partner, blaming the broader crypto industry’s damaged reputation. In a 2025 interview with DL News, Ardoino noted that Big Four firms are hesitant to work with crypto clients due to regulatory risks and ties to the traditional banking sector.

The stablecoin issuer has instead relied on third-party attestations in lieu of audits to demonstrate its reserves, but the practice will not satisfactorily meet MiCA standards. Unless Tether makes significant improvements, its entry into the EU market will remain unclear.

Binance Stares at Regulatory Headwinds

The Binance miss out is less surprising considering the uneasy relationship the exchange has had with EU regulators. The company has withdrawn its operations in some European countries such as Cyprus, Germany, and the Netherlands in recent years. It also halted processing licenses in other countries with heightened scrutiny and shifting compliance requirements. 

Binance is also facing an investigation in France over potential money laundering offenses, which is another dent in its reputation in the region. MiCA governance and audit requirements also entail extra challenges, more so to a company that finds itself in legal stress in a number of jurisdictions.

In response, Binance has implemented operational modification – preventing copy trade and blocking access to unregulated stablecoins. However, its current state indicates that the firm needs to make additional modifications to make it fully comply with MiCA.

What’s Next?

EU officials intend to release an overall report on the state of MiCA compliance in September, nine months after the framework started to affect CASPs. The checkpoint will give further clarity on which firms are progressing toward full approval – and which may need to exit the market.

For now, the message is clear: the EU is raising the bar for crypto firms, and those unwilling or unable to meet MiCA’s standards will face exclusion from one of the world’s largest financial zones.