Europe’s crypto sector is heading into the MiCA transition with a stark compliance gap. Of roughly 3,000 crypto asset service providers registered under national regimes, only about 244 have secured full regulatory approval. That leaves around 92% still short of the finish line as the transition deadline stands at July 1, 2026.
European founders are increasingly looking at the UAE
Irina Heaver, a lawyer at NeosLegal, said her firm receives more than 120 inquiries a week from crypto entrepreneurs seeking to establish operations in the United Arab Emirates. About half of those applications come from Europe, especially Spain, Italy, Germany, Switzerland, and the United Kingdom. She said most of the founders considering the move are not first-time operators. They are experienced entrepreneurs who have already built and exited successful ventures.
The pull is not limited to tax or cost considerations. For teams that need to move quickly, lower regulatory uncertainty and a more predictable licensing path are becoming central factors in deciding where to base operations.
Licensing speed has become a competitive advantage
In the UAE, operational licenses through Dubai’s Virtual Assets Regulatory Authority, or VARA, can often be obtained within days. Comparable approvals in Europe can take months. In crypto, that timing gap matters. It affects product launches, staffing plans, and how fast a company can enter a market.
VARA sits at the center of Dubai’s virtual asset framework, overseeing licensing and compliance standards. The article points to this clearer process as one reason companies are reassessing whether Europe remains the best place to scale.
Stablecoin rules add to MiCA pressure
MiCA also imposes specific requirements on stablecoins, including rules on reserves, redemption rights, and transaction limits for certain non-euro stablecoins. Those provisions are becoming a growing concern for market participants, and some major projects have already adjusted their European operations with compliance in mind. The report says the framework could push firms without approval to relocate to more accommodating jurisdictions or cut back their European presence.
Dubai’s appeal extends beyond licensing speed. Companies based in the UAE can more easily reach users and investors across Asia, North Africa, and other emerging economies. As the UAE crypto sector expands and MiCA compliance demands tighten, Europe faces the risk of losing entrepreneurs, workers, and investment capital to overseas hubs.