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Crypto’s Regulatory Challenge: Navigating EU’s MiCA Requirements and Competing with U.S. Innovation

Crypto’s Regulatory Challenge: Navigating EU’s MiCA Requirements and Competing with U.S. Innovation

Bitget-RWA2025/10/24 11:04
By:Bitget-RWA

- EU's MiCA framework reshapes crypto markets, with firms securing licenses and adapting to compliance demands. - U.S. lawmakers aim to finalize a crypto bill by year-end, balancing innovation with oversight amid global regulatory shifts. - MegaETH publishes MiCA-compliant whitepaper, allocating 9.5% tokens to team and enforcing KYC/AML safeguards. - Revolut and Blockchain.com expand under MiCA, but compliance costs risk deterring smaller players and stifling DeFi growth. - Global crypto firms face tradeof

The introduction of the European Union's Markets in Crypto-Assets (MiCA) regulations is transforming the digital asset sector, as leading companies obtain licenses and develop new solutions within the regulatory framework. With the EU’s first all-encompassing crypto policy now in force, projects are working to meet compliance requirements while seeking avenues for expansion. At the same time, U.S. legislators are working to establish their own regulatory structure before the year concludes, striving to encourage innovation while maintaining oversight.

MegaETH, a decentralized finance (DeFi) platform, has released a whitepaper that adheres to MiCA standards, detailing its token distribution and system architecture, according to a

. The paper assigns 9.5% of tokens to the development team and enforces a mandatory two-week withdrawal window, identity verification, and risk notifications, all in line with MiCA’s investor safeguards. While following these rules grants access to EU retail participants and regulated custodians such as OKCoin Europe Limited, some critics believe these requirements could hinder widespread adoption. Protocols must weigh the benefits of regulatory approval against the flexibility of their token models.

Crypto’s Regulatory Challenge: Navigating EU’s MiCA Requirements and Competing with U.S. Innovation image 0

Revolut, a neobank headquartered in London, has obtained a MiCA license in Cyprus, setting the stage to introduce a stablecoin by 2026, as reported by

. Legal analyst Sadri Sali points out that the company will need to utilize its Lithuanian Electronic Money Institution (EMI) license to issue asset-backed tokens under MiCA. Nevertheless, the expenses associated with compliance—such as employing large numbers of anti-money laundering staff—may discourage smaller financial institutions. Revolut’s recent moves into the Mexican market and its acquisition of AI firm Swifty further demonstrate its intent to lead in international financial services, according to a .

Blockchain.com has also leveraged MiCA, securing authorization from Malta's Financial Services Authority to operate in 30 European Economic Area (EEA) nations, as stated in a

. Now under the leadership of financial industry expert Fiorentina D'Amore, the company aims to expand its custody offerings, institutional services, and region-specific products. CEO Peter Smith noted that MiCA’s unified standards are “establishing new global benchmarks,” allowing Blockchain.com to move from a patchwork of regulations to a single compliance regime.

In the United States, lawmakers are close to reaching agreement on a crypto regulatory bill, with 90% of the legislation already drafted, according to a

. The primary goal is to oversee centralized platforms like Coinbase without hindering DeFi progress. However, some warn that current Senate proposals could unintentionally restrict decentralized finance and wallet innovation. Summer Mersinger from the Blockchain Association advised against measures that could drive innovation abroad, while Senator John Kennedy expressed concerns about the risks of hastily crafted regulations.

With MiCA reinforcing Europe’s position as a leader in crypto regulation, companies must balance strict compliance with ongoing innovation. The U.S. push to complete its own rules highlights a worldwide trend toward more organized markets, where both stability and progress compete for priority. For now, the prevailing advice is to stay calm and continue trading.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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