The crypto industry’s rapid evolution has always been intertwined with regulatory uncertainty. However, the European Union’s Markets in Crypto-Assets (MiCA) regulation, fully enforced by December 2024, has introduced a paradigm shift in how exchanges operate—and how investors assess risk. By imposing stringent licensing, transparency, and anti-money laundering (AML) requirements, MiCA has reshaped the competitive landscape, with profound implications for global exchange valuations and compliance strategies.

MiCA’s Framework: A New Baseline for Compliance

MiCA mandates that all crypto-asset service providers (CASPs) operating in the EU obtain a license by early 2025, adhering to “fit-and-proper” criteria for management,…