Opinion by: Slava Demchuk, Co-founder and CEO of AMLBOT
All Virtual Asset Service Providers (VASPs) registered in the EU by 2025 must comply with the market required by this year’s Crypto Asset Management Regulations (MICA). Not everyone can do this.
Essentially, mica regulations are a good legal framework for the cryptocurrency industry, but it also has some drawbacks, especially for crypto startups and small businesses.
From the case in Estonia and its implementation of the crypto license in 2017, it can be predicted that about 75% of VASPs will need to cease their operations in the EU.
What happened to crypto licenses in Estonia?
In 2017, Estonia was one of the first EU member states to introduce crypto licensing procedures. Obtain a cryptographic license (VASP registration) Easy and fast. There is no need to be a physical presence, share capital requirement or perform anti-money laundering (AML) and know the proof of your customer (KYC) system. result? By 2019, Estonia had issued approximately 2,000 cryptocurrency licenses.
However, starting in 2019, Estonia has passed several amendments to the law, which contain requirements similar to mica. As a result, most licensed crypto companies are unable to comply with the new requirements and lose their licenses. Today, Estonia has only about 45 licensed cryptocurrency businesses.
Current situation of the EU with VASP registration
Similar situations can occur in countries with mild VASP registration requirements, such as Poland and the Czech Republic. Due to the simple and rapid registration process in the country before the implementation of mica, there are approximately 1,600 VASPs in Poland. With minimal requirements, it is possible to open a company in these countries within a few weeks and obtain VASP registration in these countries.
These licensing processes have been completely changed when mica is fully effective in 2025. All registered VASPs must comply with the new requirements, which will be the same regardless of the country they are established; otherwise, they will be required to stop business.
Recent: 10 Stablecoin issuers approved by EU mica – Excluded
Most of them will not be able to comply with previous experience, such as when 1,900 companies lost their VASP registration in Estonia. These permitted losses occur due to several key factors:
-
Their size: Many registered VASPs are one-to-one companies that provide essential communication in P2P platforms or over-the-counter lines. They will not have enough resources to meet strict mica requirements.
-
cost: Getting a mica license is expensive. It was possible to receive it before vasp Registration in Poland or the Czech Republic is 2,000-4,000 euros. The price of a mica license is much more than that, usually around €30,000-80,000 depending on the business model and the country of the company.
-
Require: Companies applying for mica licenses must demonstrate that they already have many complex processes, including but not limited to AML/KYC, data protection and cyber resilience. Therefore, companies have to hire many experts and establish many processes. Based on the number of VASPs registered in Poland, by July 2025, these 1,600 VASPs will need to find 1,600 AML/Compliance Officer (per VASP) (one VASP) – when all VASPs in Poland comply with the MICA with relevant knowledge, expertise and pass the fitter test. This is almost impossible.
In addition, based on the services provided by the company, the equity requirements for mica range from 50,000 to 150,000 euros. Many currently registered VASPs are startups or small companies whose revenue will not be able to cover all the fees required to establish the above process and meet the equity requirements.
That’s where small businesses and startups are left behind? They will not be equipped with mica.
Opinion by: Slava Demchuk, Co-founder and CEO of Ammlbot.
This article is for general information purposes and is not intended to be considered legal or investment advice. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent Cointelegraph’s views and opinions.
