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EU Regulatory Framework for Crypto Companies
Europe has introduced the Markets in Crypto-Assets (MiCA) framework, creating a unified legal architecture for 27 EU countries. This framework establishes rules for corporate governance, customer protection, asset custody, operational resilience, and other fundamental aspects. The main advantage of MiCA is the 'EU passporting' system, which allows crypto companies to obtain a license in one EU country and access all European countries. However, the high cost of regulatory compliance and challenges in 'regulatory forum shopping' are drawbacks for smaller players.