EU Countries Challenge Licensing Loophole Under MiCA

🇪🇺 EU Countries Challenge Licensing Loophole Under MiCA

Regulators raise concerns over ‘passporting’ practices across the European market for digital asset firms

A group of EU member states — including regulatory bodies from countries such as France, Italy, and Austria — have voiced serious concerns over how the MiCA (Markets in Digital Assets) framework is being applied in practice. The main issue lies in passporting, a mechanism that allows firms licensed in one EU country to operate freely across all member states without the need for separate authorization.

📌 The concern: companies may seek licenses in jurisdictions with less stringent oversight (such as Malta), and then offer services in more strictly regulated countries like Germany or France — effectively bypassing tighter controls through legal backdoors.

🔍 Proposed regulatory shift

National regulators are now calling for change. France’s AMF, along with others, is proposing the following:

• Transferring oversight of major firms to ESMA (European Securities and Markets Authority), the central EU regulator.
• Raising compliance standards across the bloc — particularly around AML, reporting, and corporate governance.

Although MiCA is already active across the EU as of 2025, this growing pressure could lead to amendments to the current model. There’s a real risk of regulatory divergence — a split between “strict” and “light” jurisdictions — if passporting continues without stronger centralized control.

⚠️ Why this creates risk for businesses

Firms planning to enter the EU market by obtaining a license in a lenient jurisdiction may soon face unexpected hurdles:

• ESMA could reassess existing licenses
• Companies may be forced to reapply under a single, more unified EU standard
• This can affect access to banking, partners, and investors

It could also impact:

• Account opening processes
• Market entry speed
• Reputation and credibility across regulated markets

✅ Now is the best time to secure your MiCA license

While passporting is still available, and companies can operate freely across the EU with one license, this is the ideal moment to act.

FINANCEIQ HUB LTD offers full support:

• MiCA license setup in compliant EU jurisdictions
• Strategic jurisdiction selection based on regulatory climate
• Documentation, legal assistance, regulator communication
• Bank account opening for licensed firms

📩 Contact us today to protect your business from future regulatory shifts and secure your position in the European digital economy.