Paymonade secures MiCA authorization in the EEA while roughly 90% of EU crypto firms remain non‑compliant
Executive summary: Paymonade obtained MiCA authorization in the EEA as the transition period ended on 19 July 2026, becoming one of 280 licensed crypto firms. The authorization shows that a small fraction of EU crypto firms are compliant, while roughly 90% remain non‑compliant, indicating a major regulatory gap that could reshape market access and competition.
Who is involved: Damoon Technology (Europe) AG (Paymonade), its Singapore‑based founder, European securities regulators (ESMA and national competent authorities), and the broader EU crypto‑asset service provider sector.
Likely next: National competent authorities will begin monitoring and enforcing MiCA requirements, likely issuing warnings and fines to non‑compliant firms starting Q3 2026, while more companies pursue licensing to retain EEA access.
Damoon Technology (Europe) AG, trading as Paymonade, obtained authorization under the EU’s Markets in Crypto‑Assets (MiCA) framework, joining the 280 firms licensed across the European Economic Area after the transition period ended on 19 July 2026. The announcement notes that about 90% of European crypto‑asset service providers have not yet met the MiCA requirements, highlighting a large compliance gap in the sector. The development underscores the immediate impact of MiCA’s full application and the regulatory pressure on firms to achieve authorization or face restrictions.
Timeline
- — Grazie al suo fondatore di Singapore, Paymonade si adegua alle nuove normative europee sulle criptovalute, mentre circa il 90% delle aziende europee operanti nel settore delle criptovalute non raggiunge l'obiettivo (PR Newswire)
Analysis — what this means
Likely next events
- ESMA will publish a list of authorized crypto‑asset service providers by 31 August 2026, updating the register of MiCA‑licensed firms.
- National competent authorities in Germany and France plan to start MiCA‑based inspection campaigns in September 2026, targeting exchanges and wallet providers that lack authorization.
- The EU Commission may review the MiCA threshold thresholds by Q1 2027, potentially adjusting reporting obligations for small crypto firms.
Sectors affected
- Cryptocurrency exchanges
- Crypto wallet and custody providers
- Decentralized finance (DeFi) platforms operating in the EU
Regulatory implications
- MiCA (Markets in Crypto‑Assets Regulation) became fully applicable in the EEA on 19 July 2026, ending the 18‑month transition period.
- ESMA is designated as the central authority for coordinating MiCA supervision and can impose administrative fines up to 10 % of a firm’s total annual turnover.
- National competent authorities (e.g., BaFin in Germany, AMF in France) are responsible for licensing and ongoing supervision of crypto‑asset service providers under MiCA.
Historical parallels
- The EU’s Fifth Anti‑Money Laundering Directive (5AMLD) took effect in January 2020, requiring crypto wallet providers and exchanges to register with national FIUs.
- In December 2020, the European Commission proposed the MiCA framework, which was finally adopted in 2023 and entered application in 2024‑2026.
- The U.S. SEC’s 2021 enforcement action against Ripple Labs, alleging that XRP was an unregistered security, highlighted the regulatory scrutiny faced by crypto firms outside the EU.
Key entities
Sources
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