The EU’s MiCA regulatory threshold is becoming apparent: #Circle and the Foyer Bank lead the market by borrowing a “compliance moat”
As the EU #MiCA regulations are implemented in depth, the compliance-tiering effect in the industry is becoming increasingly pronounced. Patrick Hansen, Circle $CRCL ’s European strategy head, notes that among 23 authorized Electronic Money Token (EMT) issuers, only 9 simultaneously hold #CASP (crypto asset service provider) licenses. This means that as many as 14 issuers, lacking the necessary licenses, are unable to provide clients with token custody and automated payment processing services—thereby severely “castrating” their B2B business capabilities.
This regulatory gap forces dramatic changes in market structure. Some projects that have not achieved full-license compliance—such as France’s stablecoin EURØP—have had to seek support for custody services from third-party platforms that hold MiCA licenses, such as #Ripple and $XRP . Meanwhile, the complexity and time-consuming nature of the Article 60 compliance procedures (requiring months to a year) creates a prohibitively high time-cost barrier.
For Circle $CRCLB and Société Générale-Forge, which have already completed their compliance setups, this is undoubtedly a major benefit. With comprehensive CASP licenses and credentials of #EMT , these two giants not only avoid regulatory pitfalls but also establish a long-term first-mover advantage in competing for the flow of high-net-worth institutional capital. In an era of stringent regulation, complete compliance capability is being transformed into the most core competitive moat.
As the EU #MiCA regulations are implemented in depth, the compliance-tiering effect in the industry is becoming increasingly pronounced. Patrick Hansen, Circle $CRCL ’s European strategy head, notes that among 23 authorized Electronic Money Token (EMT) issuers, only 9 simultaneously hold #CASP (crypto asset service provider) licenses. This means that as many as 14 issuers, lacking the necessary licenses, are unable to provide clients with token custody and automated payment processing services—thereby severely “castrating” their B2B business capabilities.
This regulatory gap forces dramatic changes in market structure. Some projects that have not achieved full-license compliance—such as France’s stablecoin EURØP—have had to seek support for custody services from third-party platforms that hold MiCA licenses, such as #Ripple and $XRP . Meanwhile, the complexity and time-consuming nature of the Article 60 compliance procedures (requiring months to a year) creates a prohibitively high time-cost barrier.
For Circle $CRCLB and Société Générale-Forge, which have already completed their compliance setups, this is undoubtedly a major benefit. With comprehensive CASP licenses and credentials of #EMT , these two giants not only avoid regulatory pitfalls but also establish a long-term first-mover advantage in competing for the flow of high-net-worth institutional capital. In an era of stringent regulation, complete compliance capability is being transformed into the most core competitive moat.