The MiCA regulation transition period has ended, requiring unlicensed crypto firms in the EU to cease operations or face legal consequences.
The transition period for the Markets in Crypto-Assets (MiCA) regulation in the European Union has officially concluded as of July 1, 2026. The European Securities and Markets Authority (ESMA) has mandated that any cryptocurrency firms that have not obtained a MiCA license must cease operations for clients within the EU.
This transition phase allowed companies to operate under existing national regulations until December 30, 2024, extending their activities until July 1, 2026, or until they secured a license. Post this deadline, any operation without proper authorization will be in breach of EU law.
According to the ESMA, 244 crypto service providers had received authorization by the end of the transition period, with several firms in Italy, France, Malta, and Spain obtaining licenses in the final days. Major platforms like Kraken, Coinbase, and Bitstamp were highlighted for their significant market presence.
In a notable move, Binance withdrew its application for a MiCA license in Greece, indicating plans to seek approval in another EU country.
Steps for Unlicensed Firms
Following the July 1 deadline, any unlicensed cryptocurrency company must halt all services to EU clients. ESMA has advised these companies to prepare winding-down plans to ensure an orderly exit from the market, which includes informing clients and facilitating the transfer of their digital assets to licensed providers or non-custodial wallets.
This requirement also extends to firms outside the EU, which cannot service or market to European clients unless under specific reverse solicitation conditions, where the client initiates contact.
On June 29, Bybit announced it would start limiting certain services for residents in the European Economic Area (EEA) while continuing to operate its regulated platform, Bybit EU, which is authorized under MiCA.
Review of MiCA Regulation
Meanwhile, the European Commission (EC) has initiated a review of the MiCA regulation. In May, it launched public consultations to evaluate the regulation's relevance in light of market changes and international standards, with feedback deadlines set for August 31 and September 30, 2026.
One focal point of this review is the regulation of stablecoins, which have gained prominence in global payments since the MiCA's initial drafting. The EC is seeking input on whether the current MiCA framework for stablecoins remains adequate and if adjustments are necessary, particularly concerning reserves and the rights of stablecoin holders.
The current MiCA framework lacks a general equivalence regime for global stablecoins, which could facilitate recognition of foreign regulations under certain conditions. The EC is also considering whether to allow multi-issuer stablecoin models and if additional reserve requirements should be established for the EEA.
Future Directions
Legal experts from Skadden have noted that the MiCA review is crucial for aligning European regulations with global practices to maintain market competitiveness. They observed a shift in industry focus from stablecoins to broader asset tokenization.
“2025 was likely the year of stablecoins. This year, I am spending much more time discussing broader asset tokenization,” stated Sebastian Barling.
The EC is also examining the legal status of tokens, including aspects of ownership, transfer rights, and custody. Additionally, a consortium of 37 major banks in the EU is working on a euro stablecoin, Qivalis, aimed at decreasing reliance on dollar-based digital infrastructures.
