Crypto companies that have not secured approval under the European Union’s Markets in Crypto-Assets regulation are increasingly considering expansion into the United Arab Emirates.
Out of nearly 3,000 firms, only 244 crypto-asset service providers have received full MiCA licenses. As the transition deadline approaches, several companies are limiting their services in Europe while exploring more crypto-friendly jurisdictions such as Dubai.
MiCA Deadline Drives Crypto Firms Toward Dubai
The EU’s MiCA transition deadline is increasing pressure on cryptocurrency exchanges and other digital asset companies.
Only 244 crypto-asset service providers have gained full authorization to continue operating across the European market. With the July 1 deadline approaching, more founders are reportedly evaluating relocation or expansion opportunities in the UAE.
Dubai-based lawyer Irina Heaver said her firm, NeosLegal, now receives more than 120 inquiries per week from European companies and entrepreneurs.
According to Heaver, growing compliance costs, lengthy approval processes and regulatory uncertainty are encouraging businesses to move their operations, capital and expertise to countries that are more welcoming to the crypto industry.
Germany and France Lead MiCA Licensing
Germany has issued the highest number of MiCA licenses so far, with 57 approved companies.
France ranks second with 26 licenses. Together, the two countries account for more than one-third of all approvals issued across the European Union.
Meanwhile, Greece, Hungary, Poland, Portugal and Romania have reportedly not granted any MiCA licenses.
Several major crypto companies have already achieved compliance. Coinbase and Ripple are among the leading firms that have secured authorization under the European regulatory framework.
Crypto Exchanges Restrict European Services
A number of major crypto exchanges are facing difficulties as the MiCA transition period comes to an end.
Binance, Bitget, MEXC and other platforms are reportedly no longer authorized to offer certain services to users in the European Economic Area. As a result, trading and deposit functions may be suspended or restricted.
Binance previously attempted to secure a MiCA license in Greece. Former CEO Changpeng Zhao said the exchange had been close to receiving approval.
However, Binance is now reportedly pursuing authorization in France to achieve full MiCA compliance.
Bybit has also started limiting some services for EEA customers. The exchange said affected users would receive further information as it adjusts its operations to meet European regulatory requirements.
Dubai Expands Its Crypto Licensing Framework
While European firms face regulatory challenges, Dubai continues to strengthen its position as a global digital asset hub.
The city’s Virtual Assets Regulatory Authority recently issued its 50th crypto license. The authorization was granted to Tribe Tokenisation, a platform focused on tokenized assets.
Dubai’s expanding licensing system, combined with its supportive approach to blockchain and digital asset businesses, is attracting more companies seeking regulatory clarity.
Tokenization Sector Continues to Grow
Interest in tokenized assets is also increasing across global financial markets.
Securitize recently received approval for a merger with a special purpose acquisition company and plans to list on the New York Stock Exchange under the ticker SECZ.
The listing would make Securitize the first publicly traded tokenization platform, highlighting the growing demand for blockchain-based financial products.
As the MiCA deadline approaches, the contrast between Europe’s strict licensing process and Dubai’s expanding crypto framework may encourage even more digital asset companies to shift their focus toward the UAE.
