Paymonade secures a MiCA license in the EU while roughly 90% of European crypto firms remain unlicensed
Executive summary: Paymonade, founded by a Singaporean entrepreneur, secured a MiCA licence in the European Economic Area, joining roughly 280 authorized crypto firms while about 90% of European crypto businesses remain unlicensed. The licence gives Paymonade legal permission to operate across the EU, potentially allowing it to capture market share from non‑licensed rivals and boosting confidence in regulated crypto services.
Who is involved: Paymonade (Damoon Technology Europe AG), its Singaporean founder, EU national competent authorities enforcing MiCA, and the wider European crypto industry.
Likely next: More firms will seek MiCA licensing, regulators will step up enforcement against unlicensed operators, and market consolidation may favour compliant players as the transitional period ends.
Paymonade, a crypto firm founded in Singapore, has become one of the few businesses to receive a licence under the EU’s Markets in Crypto‑Assets (MiCA) regime. The announcement underscores how the new regulatory framework is beginning to take effect, even as the majority of European crypto operators—estimated at around nine out of ten—have not yet secured the required authorization. This disparity highlights the early stage of MiCA implementation and the varying readiness of firms to meet its substantive requirements on capital, governance and consumer protection. The licence gives Paymonade a tangible advantage in the European Economic Area, allowing it to offer services legally across member states while unlicensed competitors face potential restrictions or enforcement actions. In the near term, regulators are likely to increase scrutiny of non‑compliant platforms, which could prompt some to exit the market, seek partnerships with licensed entities, or accelerate their own application processes. For licensed players, the clearer rule set may attract institutional clients and investors seeking compliant exposure, potentially reshaping competitive dynamics within the region’s crypto sector.
Timeline
- — Paymonade, opgericht door een Singaporees, voldoet aan de nieuwe Europese cryptoregelgeving, terwijl ongeveer 90% van de Europese cryptobedrijven daar niet in slaagt. (PR Newswire)
Analysis — what this means
Likely next events
- EU MiCA transitional period ends July 2026, triggering enforcement actions against non‑licensed crypto providers.
- European Securities and Markets Authority (ESMA) to publish a public register of licensed crypto‑asset service providers by end August 2026.
- Paymonade plans to launch a EU‑wide retail crypto product in Q4 2026.
- EU regulators may impose fines of up to 5% of annual turnover on unlicensed crypto activities starting Q1 2027.
Sectors affected
- crypto‑asset exchanges
- crypto wallet providers
- EU fintech
Regulatory implications
- MiCA requires crypto‑asset service providers to obtain authorization from national competent authorities; non‑compliance can lead to fines up to €10 million or 10 % of turnover.
- ESMA will maintain and update a public register of licensed entities, increasing market transparency.
- National competent authorities will conduct periodic audits and inspections of licensed firms to ensure ongoing compliance.
Historical parallels
- US SEC crackdown on unregistered ICOs in 2021, exemplified by the Telegram GRAM case.
- Japan’s 2020 amendment to the Payment Services Act that mandated licensing for crypto exchanges.
- South Korea’s 2021 implementation of the Act on Reporting and Using Specified Financial Transaction Information, imposing AML/KYC rules on crypto businesses.
Key entities
Sources
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INTELLIGENCE
Social Pulse
AI estimate · not scraped