Europe’s most ambitious crypto regulation went fully live on July 1, 2026. The Markets in Crypto-Assets framework, known as MiCA, replaced 27 separate national regimes with a single unified licensing system for crypto-asset service providers across the EU.

Dr. Lin Han, founder and CEO of Gate Group, warned in early July 2026 that MiCA’s success depends on universal compliance among crypto platforms. His position: as long as unregulated operators continue to serve EU clients, the goal of a fair competitive landscape will remain unattainable.

The compliance gap problem

Licensed platforms invest heavily in compliance infrastructure, legal teams, and regulatory capital. Unlicensed overseas operators serving the same EU customer base carry none of those costs. The result is a structural imbalance that rewards ignoring the rules.

Gate Technology Ltd, the EU-facing arm of Gate Group, obtained its MiCA CASP license from the Malta Financial Services Authority in late 2025. The license covers exchange and custody services. The company also secured a Payment Institution license under the revised PSD2 framework in early 2026.

The European Securities and Markets Authority, ESMA, has stated that non-authorized firms serving EU clients are in violation of EU law and must stop. No specific penalties for non-compliant platforms have been highlighted in present coverage.

Tether’s absence and what it signals

Tether, the issuer of USDT, announced it would not pursue MiCA authorization. The company cited concerns about the reserve requirements MiCA imposes on stablecoin issuers.

USDT is the dominant trading pair on most global exchanges, and a significant volume of EU-based trading runs through it. If MiCA’s stablecoin rules effectively push the most liquid dollar-denominated asset out of compliant EU platforms, traders do not simply stop using USDT. They find other ways to access it, often through platforms that are not MiCA-authorized.

What this means for traders and the EU crypto market

Smaller platforms that lack the capital to absorb MiCA compliance costs are already exiting the EU market or scaling back services.

Gate’s dual licensing, MiCA CASP plus PSD2 Payment Institution, gives it a broader service footprint than many competitors who cleared only one of those hurdles. That positioning becomes more valuable as the compliance barrier rises and fewer entrants can clear it. But its value depends entirely on regulators making that barrier real for everyone, not just the firms that volunteer to clear it.