On July 1, 2026, the transitional period under the EU's Markets in Crypto-Assets Regulation (MiCA) officially expired. From this date onward, any entity providing crypto asset services to EU users must hold a valid MiCA license. Unlicensed operators are prohibited from accepting new deposits or conducting new business. French regulator AMF warned that violations could result in up to two years imprisonment and fines of €30,000, with additional powers to issue public blacklists and request website blocks.
MiCA Transition Ends: ~75% of Old Platforms to Exit
As of May 2026, only approximately 194 crypto firms had obtained full MiCA authorization across the EU. In contrast, the number of crypto service providers previously registered or operating under national regimes is estimated between 1,100 and 3,000. Law firm Hogan Lovells estimates that about 75% of platforms operating under legacy registrations will lose legal eligibility once the transition ends. Exchanges that did not secure MiCA authorization and thus face EU access restrictions include Binance and MEXC. The Netherlands ended its national transitional period as early as July 1, 2025; Germany shortened its grace period to end-December 2025; Lithuania saw over 240 registered crypto firms shut down when its transition ended. By June 2026, 20 of the 27 EU member states had already concluded their national transitional periods ahead of the July 1 deadline.
MiCA Framework: Unified Rules, Ten Service Categories, and Stablecoin Sub-Framework
MiCA is the EU's first comprehensive regulatory framework for crypto asset markets, effective from 2023 and covering all 27 member states plus the three EEA countries (Norway, Iceland, Liechtenstein). It classifies Crypto Asset Service Providers (CASPs) into ten service categories including exchange platform operation, custody, conversion, order execution, portfolio management, and advisory services. A single MiCA license covers only the categories specified in the application. The regulation also establishes a sub-framework for stablecoins: asset-referenced tokens (ARTs) and e-money tokens (EMTs) must meet issuance authorization and reserve requirements, with larger issuers subject to stricter oversight. The "passporting" mechanism allows a firm licensed in any member state to expand services to other EU countries without re-licensing.
Exchange Licensing Landscape: Binance Application Blocked, KuCoin Stalled, MEXC Unlicensed
Major exchanges face varying outcomes. Binance submitted a MiCA application through the Hellenic Capital Market Commission (HCMC) in Greece in January 2026, positioning Greece as its European hub. However, on June 16, Reuters reported that HCMC plans to reject Binance's application following a joint review by Greek, Irish, and Latvian regulators, citing concerns over Binance's legal compliance record and corporate governance structure. KuCoin obtained authorization from Austria's FMA in November 2025 but was subsequently prohibited from launching operations due to vacancies in key anti-money laundering and sanctions compliance positions. KuCoin has appealed and still cannot accept new EU users. MEXC and other exchanges never obtained MiCA authorization and will cease servicing EU users after the transition.
Stablecoin Reshuffle Complete: USDT Exits Compliant Platforms, USDC Becomes Dominant
The stablecoin landscape has already been reshuffled. Tether's USDT never obtained MiCA authorization. CEO Paolo Ardoino stated publicly that MiCA's requirement to hold most EMT reserves in EU regulated bank accounts is incompatible with Tether's existing reserve model. Consequently, Coinbase delisted USDT in December 2024, Crypto.com followed on January 31, 2025, and Binance and Kraken delisted USDT in March 2025. USDT has fully exited major EU compliant platforms. In contrast, Circle's USDC and EURC both obtained EMT authorization. As of June 2026, USDC's market cap stood at approximately $75 billion, making it the dominant stablecoin in EU compliant scenarios. The ART framework, the highest MiCA barrier, has seen no issuers obtain authorization to date.
User Actions and Future Review: MiCA Is Not the End
For EU users, after July 1, using unlicensed platforms carries several risks: platforms may stop accepting new deposits, require withdrawals within a limited time, or restrict account operations without prior notice. OKX Europe found that between May 2025 and May 2026, approximately 41% of total European crypto app downloads came from exchanges without MiCA authorization, and an estimated 60% of European crypto users were using unlicensed platforms. If a platform requires account migration (as experienced by some EU users of Bybit, Bitvavo, Kraken, Coinbase, and Crypto.com), users typically need to complete fresh KYC verification and accept updated terms of service. MiCA is not the final step: on May 20, 2026, the European Commission launched a formal review consultation for MiCA, with comments due by August 31, and a final report to be submitted to the European Parliament by June 30, 2027. The 86-question consultation covers stablecoin competitiveness (especially euro stablecoins against USD stablecoins), DeFi, staking and lending, RWA tokenization, and whether ESMA should gain direct supervisory authority over major CASPs. France, Austria, and Italy support direct ESMA supervision of top CASPs to harmonize standards. Meanwhile, the Qivalis consortium, formed by 37 banks including BNP Paribas, ING, and UniCredit, is developing a euro-pegged compliant stablecoin to compete for euro digital currency market share.
