Time is running out. The European Securities and Markets Authority (ESMA) has confirmed the end of the transition period for regulating the cryptocurrency market under the MiCA rules on July 1, 2026. Consequently, after this date any platform serving clients from the European Union without a CASP license will be operating outside the law.

For millions of European users this means a real risk of one morning discovering that access to their usual exchange has been completely shut off.

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What will happen on July 1

Regulators are not planning any smooth transition. On the contrary, ESMA requires all unauthorized crypto service providers to fully cease operations by the specified date. Companies without a license are obliged to put a special wind-down plan into effect. They will have to stop accepting new clients, notify users in advance and ensure a safe withdrawal of assets by transferring funds to a licensed provider or to a personal wallet.

Financial regulators are prepared to act as harshly as possible. For example, France's AMF authority warned that from July 1, providers without a MiCA license are obliged to leave the local market. The agency announced its intention to blacklist the companies, issue public warnings and seek through the courts to block sites aimed at French users. Unauthorized activity in France is treated as a criminal offense with a possible prison term and large fines.

The scale is far larger than it seems

The figures are striking indeed. Information has emerged in the media that, as of May 2026, only about 194 crypto companies had obtained a MiCA license. For comparison, in 2024 more than 3,000 players were registered in Europe. Thus, about 75% of existing platforms risk completely losing the right to operate.

Source: BeInCrypto