Paymonade Obtains MiCA License as 90% of European Crypto Firms Exit
Paymonade, a Singaporean-founded payments firm, obtained a Markets in Crypto-Assets Regulation (MiCA) license, clearing Europe's compliance framework. The approval comes as roughly 90% of European crypto companies have ceased operations or relocated, unable to meet the stricter licensing requirements.
Key Takeaways
- 1## MiCA Compliance Achievement Paymonade secured regulatory approval under Europe's Markets in Crypto-Assets Regulation, becoming one of a small cohort of firms to successfully navigate the bloc's new licensing regime.
- 2The company's Singaporean origins did not bar its European operations, though the path to approval required demonstrating capital reserves, operational transparency, and consumer protection measures aligned with MiCA's standards.
- 3## Scale of Industry Withdrawal Approximately 90% of crypto firms previously operating in Europe have exited the market or relocated operations outside the bloc rather than pursue MiCA compliance, according to industry observations cited in the announcement.
- 4The departures reflect the regulatory framework's capital and operational demands, which many smaller and mid-size exchanges, wallet providers, and service firms determined were not economically viable to meet.
- 5## Regulatory Context MiCA, which took full effect in 2024, established the European Union's first comprehensive rulebook for crypto activities, including requirements for stablecoin issuers, custody providers, and trading platforms.
MiCA Compliance Achievement
Paymonade secured regulatory approval under Europe's Markets in Crypto-Assets Regulation, becoming one of a small cohort of firms to successfully navigate the bloc's new licensing regime. The company's Singaporean origins did not bar its European operations, though the path to approval required demonstrating capital reserves, operational transparency, and consumer protection measures aligned with MiCA's standards.
Scale of Industry Withdrawal
Approximately 90% of crypto firms previously operating in Europe have exited the market or relocated operations outside the bloc rather than pursue MiCA compliance, according to industry observations cited in the announcement. The departures reflect the regulatory framework's capital and operational demands, which many smaller and mid-size exchanges, wallet providers, and service firms determined were not economically viable to meet.
Regulatory Context
MiCA, which took full effect in 2024, established the European Union's first comprehensive rulebook for crypto activities, including requirements for stablecoin issuers, custody providers, and trading platforms. The regulation's stringency has reshaped Europe's crypto landscape by consolidating activity among larger, better-capitalized operators willing to bear the compliance burden.
Why It Matters
For Traders
A licensed European venue operating under MiCA may offer lower counterparty risk than unregulated alternatives, but reduced market competition could widen spreads and liquidity fragmentation.
For Investors
MiCA consolidation favors larger, well-funded operators; smaller tokens and projects lose direct European on-ramps, potentially depressing trading volume in Europe relative to offshore venues.
For Builders
dApps and protocols targeting European users must now route through MiCA-licensed intermediaries for fiat on-ramps, raising cost and latency versus pre-regulation flows.
