Starting July 1, crypto companies without a MiCA license must stop servicing clients from the European Union, as reminded by ESMA.
The regulator has instructed service providers to prepare a business wind-down plan in advance.
According to Hogan Lovells, by May, only 194 companies had received official approval. This is a small fraction of the 3,000 firms that previously operated in the region. It is expected that around 75% of the old platforms will either shut down or exit the European market.
For regular users, this means account blockages. Unlicensed exchanges will stop accepting deposits and will require users to withdraw their funds.
Traders in France will be the most affected, as local regulators have threatened violators with criminal charges and fines.
The MiCA requirements have already impacted the stablecoin market. Major exchanges like Binance and Kraken have begun delisting USDT, as the asset does not comply with regulations. Regulated tokens, such as USDC, are taking its place.
As a reminder, in early June, the New York State Department of Financial Services and the European Banking Authority signed a memorandum of understanding for joint oversight of the "stablecoin" market.