Borg, however, said the biggest challenge is no longer the law itself but how regulators are applying it. He estimates Europe could go from roughly 3,000 registered crypto asset service providers to only 300 or 400 licensed firms under MiCA — which he indicated would suit the regulators just fine
“I’m noticing that regulators are becoming more and more lazy,” Borg said. “They prefer having 20 operators to regulate rather than invest in more technology and more human resources to supervise more operators.”
Who can afford transparency?
Borg believes the growing cost of compliance is biased toward companies that can afford bigger legal and compliance teams. While MiCA itself does not intentionally favor large firms over smaller ones, he said the technical standards and supervisory expectations introduced alongside the regulation have made it harder for startups to compete.
Not everyone agrees. Alex Fazel, chief partnership officer at SwissBorg, said obtaining a MiCA license is less about company size than proving how a business operates.
“Transparency is key,” Fazel said. “You cannot build trust without transparency.”
SwissBorg received its MiCA license through France’s financial markets regulator this year. Fazel said the licensing process required the company to document its governance, compliance procedures and operations in detail.
