"Slaughter" in cryptocurrencies - The new EU law "wiped out" 90% of companies overnight

A regulatory "earthquake" is shaking the European digital asset market, as the end of the transition period for the European Union's strict new regime has literally forced shut downs for the vast majority of active companies. The implementation of the highly anticipated Markets in Crypto-Assets (MiCA regulation), whose transition period officially concluded on July 1, 2026, has led to a violent and dramatic contraction of the sector. Before MiCA was fully enacted, Europe served as a haven for more than 3,000 registered crypto companies operating under a complex mosaic of diverse national rules. Today, the landscape is bleak for market proponents, as barely 280 companies managed to secure a full operating license for the European Economic Area (EEA). This practically means that nearly 9 out of 10 companies (90% of the market) "disappeared," having been unable or choosing not to adapt to the new reality. These businesses either exited the European market permanently or were forced into restructuring, while those continuing to operate without a license are now in flagrant violation of EU law.

Even "giants" left off the European map

The severity of the new framework proved to be an insurmountable barrier even for the most powerful players. According to independent analyses, only a tiny percentage of the top 100 global crypto exchanges (by trading volume) currently hold MiCA approval. Indicative of the situation is that prominent names among global exchanges are conspicuously absent from official European registries, along with at least one of the world's largest stablecoin issuers by market capitalization.

The "surprise" from Singapore

Amidst this landscape of absolute cleansing, very few companies managed to clear the extremely high bar of compliance. Standing out among the survivors is Damoon Technology (Europe) AG, which operates under the brand name Paymonade. The company, headquartered in Liechtenstein where it received approval from the competent Financial Market Authority (FMA), secured the coveted "European passport." This license now allows it to provide regulated fiat-to-crypto on-ramp/off-ramp services across all 30 EEA countries under a single authorization. Paymonade, which serves as an infrastructure provider for leading exchanges, banks, and fintechs requiring euro clearing, recorded an annualized transaction run-rate of 1.8 billion dollars during the first half of 2026. Its success is particularly significant as it is a company founded and led by Calvin Cheng (a Singaporean citizen and former Appointed Member of Parliament in his country), introducing an Asian anchor into a MiCA registry that is otherwise almost entirely dominated by US and European entities.

"An end to the era of unregulated crypto"

The future of the sector will belong exclusively to those who invest in institutional safeguarding, market executives point out. "The era of loosely regulated cryptocurrencies is ending permanently," stated Paymonade founder Calvin Cheng, adding that the next generation of leaders in digital assets will consist of companies capable of marrying technological innovation with regulatory trust. On his part, the CEO of Damoon Technology (Europe) AG, Milos Winter Bogdanovic, emphasized: "Banks, fintechs, and exchanges are now demanding a single, regulated infrastructure partner to cover the whole of Europe, instead of being forced to negotiate country-by-country." The new reality shaped by the MiCA regulation clearly shows that the "party" of unaccountability in Europe has come to an end. For the remaining 280 licensed companies, however, a glorious field of opportunity is opening up, with Paymonade already announcing plans to double its staff in Europe, aiming to skyrocket its annual transaction volume to 6 billion Swiss francs (CHF) by mid-2027.

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