Crypto infrastructure firm Ripple has received a preliminary MiCA license ahead of July’s deadline.
On the 23rd of June, the firm announced that it had been approved by the Luxembourg CSSF (Commission de Surveillance du Secteur Financier). According to the firm, the issued CASP (crypto asset service provider) license is like a ‘green light’ but is subject to final approval.
The preliminary approval, in the form of a ‘green light letter,’ is subject to final conditions. It will enable Ripple to scale regulated cryptoasset services to financial institutions and businesses across all 30 countries of the European Economic Area.
The firm noted that the CASP approval and its existing EMI (electronic money institution) license would allow EU firms, banks, and fintechs to transact crypto assets and stablecoins via its platform.
MiCA: An opportunity or regulatory pressure?
According to Cassie Craddock, managing director U.K & Europe at Ripple, MiCA would ‘unlock’ the markets and allow it to scale its operations.
MiCA has helped to unlock a new wave of institutional digital assets adoption, and we are seeing that demand accelerate across the region.
But it has not been a smooth transition for most crypto firms.
In 2024, the EU gave crypto firms 18 months to seek a license under its crypto regulatory framework, MiCA. Over 1200 applied for the license, but only about 200 qualified. Even Binance hit a snag, and nearly 60% of EU crypto users could be affected after the deadline.
For the OKX exchange, MiCA is a massive wake-up call. In an email statement, Erald Ghoos, CEO of OKX Europe, told AMBCrypto,
MiCA is a massive wake-up call for the industry, and we expect that up to 80% of unregulated platforms simply won’t survive this shift. However, the real test begins on July 2.
Ghoos warned that if offshore platforms are not blocked from secretly onboarding European users, it could create an uneven playing field. That said, several stablecoin players have received a full license under the MiCA regime, including Circle.
Separately, Ripple’s RLUSD stablecoin recently hit a record $1.8B in supply. It remains to be seen whether recent partnerships and the EU’s regulatory momentum will accelerate its adoption.
Final Summary
- Ripple received a temporary MiCA approval via Luxembourg’s financial regulator
- OKX projected that 80% of EU crypto firms won’t survive the MiCA rules ahead of the July deadline