EU Crypto Regulations Leave Hundreds Without Licence

The European Union's new regulations on cryptocurrency have resulted in only 12% of EU crypto companies being approved to continue operating within the bloc. As of July 1, 244 digital asset groups are allowed to serve EU customers under the Markets in Crypto-Assets Regulation, while 1,738 companies must cease operations due to a lack of a bloc-wide licence.

Big names such as Coinbase and Kraken have received licences, but Binance, the world's largest cryptocurrency trading venue, has failed to comply with the regulations. The EU is imposing a stringent approach to protect consumers in the industry, leading to a wave of consolidation as unlicensed companies are bought or merged with regulated rivals.

Regulators are urging unauthorised companies to wind down their EU activities and transfer customers to licensed providers. However, there is uncertainty over what will happen to unlicensed companies that continue to have EU clients after the deadline.