The EU's Markets in Crypto-Assets Regulation (MiCA) will take full effect on July 1 local time, and unauthorized crypto companies and exchanges will lose the qualification to provide services to EU customers. Cryptocurrency legal experts said that they receive a large number of inquiries from companies and founders looking to set up in the UAE every week, with more than half coming from Europe. Spain, Italy, and Germany are the top three countries with the highest number of inquiries.
Legal Advisory Sources: Over Half from Europe, Spain in Top Three
Cryptocurrency legal experts revealed that more than half of the cases involving inquiries about setting up companies in the UAE come from Europe, with Spain, Italy, and Germany being the top three countries with the highest number of inquiries. Founders from Switzerland and the UK (both not under MiCA's jurisdiction) are also inquiring about UAE establishment plans. MiCA's scope covers the European Economic Area (EEA), including EU member states as well as Iceland, Liechtenstein, and Norway, with a total population of approximately 500 million.
Binance Withdraws Greece Application and Suspends Some Services, OKX and Coinbase Announce 8% Deposit Rewards
Binance withdrew its MiCA application in Greece last week and informed EU users that it will suspend some services while seeking other authorization paths. Binance stated in a statement: "Our goal in Europe remains unchanged, and we are confident that we will obtain a MiCA license in the coming months."
OKX and Coinbase have both completed MiCA authorization, and the day after Binance's withdrawal event, they announced deposit rewards of up to 8% for new users to attract users affected by the Binance incident.
Two Competitive Advantages of Dubai VARA for Crypto Companies
Legal experts explain that compared to European regulators, Dubai VARA's two attractions are as follows:
Specialized regulatory body: VARA is established entirely for regulating cryptocurrencies and digital assets, while most European regulators are also responsible for supervising banks and traditional financial institutions; this specialization makes the approval process for new companies and projects faster.
Market access scope: Obtaining a UAE license provides access to Asian and North African markets outside of Europe, covering nearly 4 billion potential customers.
Frequently Asked Questions
What is the specific impact of the MiCA July 1 deadline on unauthorized crypto companies?
After MiCA takes full effect, unauthorized crypto companies and exchanges will lose their qualification to provide services to EU customers, covering approximately 500 million people in the European Economic Area (EEA). OKX Europe CEO Erald Ghoos publicly stated that 80% of crypto companies will not survive under MiCA requirements.
After Binance withdrew its MiCA application in Greece, what is the current status of its European business?
After Binance withdrew its Greece application, it informed EU users that it will suspend some services while seeking other authorization paths. Binance stated that its goal in Europe remains unchanged and expressed confidence in obtaining a MiCA license in the coming months. OKX and Coinbase have completed authorization and announced 8% deposit rewards the day after Binance's withdrawal.
Switzerland and the UK are not under MiCA's jurisdiction; why are their founders also inquiring about UAE establishment plans?
Legal experts revealed that founders from Switzerland and the UK are also inquiring about UAE establishment plans. The original text did not specify the specific motivation for their inquiries, only stating that this is another type of inquiry source different from the European MiCA pressure.
