In the Old Continent, regulation is as much a passion as a bureaucratic reflex. Here, we don't just monitor: we supervise, we mark, we lock. And sometimes these locks have names like MiCA or ESMA. Behind these acronyms, increasingly strict rules on cryptos, supposed to protect without suffocating. But when the application varies from one country to another, the entire ambition of the EU is undermined.
In brief
- MiCA has come into force, but its application varies greatly between European countries.
- Germany issues crypto licenses while Luxembourg remains very restrictive in this area.
- ESMA criticizes Malta and wants to unify practices to avoid persistent regulatory loopholes.
- Local regulators will have to become technicians, as Europe moves towards stronger centralization.
MiCA: when European ambition meets the reality of Member States
Since January 2025, the MiCA (Markets in Crypto-Assets) regulation has officially entered into force. He promised harmonization of rules for all players in the crypto sector within the EU. But the unity displayed on paper is eroding on the ground.
Germany, for example, has already granted more than 30 crypto licenses, often to traditional banks. Meanwhile, Luxembourg has only validated three, only for heavy goods vehicles already well established. This disparity fuels a risk of regulatory arbitrage: certain players choose the most flexible jurisdictions, distorting competition.
Lewin Boehnke, Chief Strategy Officer at Crypto Finance Group, did not mince his words :
There is a very, very uneven application of the regulations.
The ESMA (European Securities and Markets Authority) put its feet in the problem by recently pointing out the MFSA of Malta: according to an official report, the Maltese regulator has only partially met expectations in the granting of crypto licenses.
ESMA wants to move from shadow to light in crypto supervision
What was only a technical debate becomes a political question. Should we let each country play its part or entrust the baton to a single conductor? For several Member States, the choice seems made.
France, Italy and Austria support a strengthening of the role of ESMA. The idea is not to deprive local regulators of power, but to accelerate efficiency and unify practices.
Still according to Boehnke:
From a purely practical point of view, I think it would be a good idea to have a unified application of the regulations.
But gray areas persist. MiCA, for example, requires the “immediate” restitution of assets held by depositories. Problem: no one knows what “immediately” means in the crypto world. This is slowing adoption, particularly among banks. The uniform interpretation of these sensitive points therefore becomes crucial.
Crypto and regulation in Europe: the future will be played out in Brussels
According to an article published by GlobalCapital, national regulators must reinvent themselves. The future would no longer be in exclusive governance, but in technical support for a central authority.
A model already exists: the European Central Bank directly supervises large banks, while collaborating with national regulators. This hybrid model could apply to the crypto market
On the ground, the rise in power of ESMA is not seen as a conflict of skills. It is seen as an opportunity to create a unique standard, capable of competing with the American SEC. And with the rise of blockchains like Solana, Avalanche or Cosmos, clear regulation becomes essential to protect investors and give credibility to the crypto market.
Crypto & EU: key benchmarks for better understanding
- 2025: MiCA comes into force, except for stablecoins (postponed to 2026);
- 30+ crypto licenses already granted in Germany compared to only 3 in Luxembourg;
- ESMA published a critical report on Malta in November 2025;
- France, Italy, Austria: declared support for centralized supervision;
- Major technical debate: legal definition of “immediate restitution” in MiCA.
With ESMA on the front line, Europe no longer wants to submit to the American agenda. It is trying to impose its own vision of financial regulation in the Web3 era. And in the global crypto arena, it intends to become the sovereign alternative to the SEC model.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
