The European Commission has defended the proportionality of the Markets in Crypto-Assets (MiCA) Regulation for small operators, arguing that the framework includes exemptions and flexibility to limit costs for SMEs, while committing to a review by June 2027 to assess any risk of relocation or market concentration. The answer, given by Commissioner Albuquerque on behalf of the Commission, responds to a parliamentary question from Marcin Sypniewski (ESN) who raised concerns that cumulative licensing costs, capital requirements, and compliance obligations could eliminate smaller players and lead to dominance by large financial institutions.
Commission points to existing SME safeguards
The Commission stated that MiCA was drafted based on an impact assessment that included a dedicated section for SMEs. That assessment found the framework would likely increase non-bank funding for SMEs through initial coin offerings and securities token offerings, providing start-ups with early-stage capital. The Commission highlighted several provisions aimed at limiting costs: exemptions from publishing a white paper for small offerings below a certain threshold and for crypto-assets distributed to small user circles. It also noted that the proportionality principle applies to all minimum prudential requirements for issuers of asset-referenced tokens and crypto-asset service providers, allowing adaptation of redemption plans and review frequency to the size and complexity of the issuer.
No separate SME test conducted
On the question of whether a separate SME test was carried out, the Commission did not confirm a distinct assessment beyond the general impact assessment. It did not directly address concerns about uneven supervisory practices across Member States, which Sypniewski warned could create an uneven playing field within the single market.
2027 review to assess relocation and competitiveness
The Commission confirmed that by 30 June 2027 it will issue a report on the application of MiCA and latest crypto-asset developments. That report will assess whether there is a risk of crypto-asset activities relocating outside the EU and whether any legislative amendment is required. The Commission did not signal any immediate plans to review or adapt the rules before that date, despite the question's request for possible adjustments if disproportionate burdens emerge.
Policy orientation and stakeholder impact
The answer signals a cautious, evidence-based approach: the Commission defends the current design as balanced but leaves the door open for future adjustments based on the 2027 review. For small crypto operators, the lack of immediate relief may mean continued high compliance costs, potentially pushing some out of the market or abroad. For large financial institutions, the current rules may favour consolidation. EU consumers could benefit from a more stable, regulated market but may face fewer choices if smaller players exit. National regulators gain clarity on proportionality but may need to ensure consistent enforcement to avoid fragmentation. The Commission's stance prioritises market integrity and investor protection over short-term competitiveness for small firms, with a promise to revisit the balance in two years.