The European Union’s MiCA transition period will end on July 1, 2026. After that date, crypto exchanges, brokers, and wallet providers that have not secured MiCA authorization will no longer be allowed to serve customers in the bloc.
The European Securities and Markets Authority said any firm continuing to provide crypto-asset services to EU clients without a MiCA license after the deadline would be in breach of EU law and must stop. ESMA also expects unapproved providers to put in place orderly wind-down plans and help clients transfer assets to an authorized provider or a self-hosted wallet.
A wide gap remains between legacy registrations and MiCA approvals
The divide between the old registration model and the new MiCA licensing system is still large. Hogan Lovells said Europe had more than 3,000 virtual asset service providers in 2024, yet only 194 authorized crypto-asset service providers, including credit institutions, by May 2026.
The law firm expects about 75% of the pre-MiCA provider base to lose registration status as national transition periods expire. A separate crypto.news report, citing an ESMA register snapshot, showed 204 authorized providers as of May 22, 2026. Approvals are still moving, but the licensed pool remains limited.
MiCA also relies on passporting. Once a company is approved by one national regulator, it can notify other authorities and offer services across all 27 EU member states. That makes the speed and quality of national reviews central to what the market looks like once the transition period closes.
France signals enforcement with prison terms and fines
France has issued one of the clearest warnings so far. The AMF said that from July 1, only authorized crypto-asset service providers may serve French clients. Firms that keep operating without approval could face a two-year prison sentence and a €30,000 fine under French rules.
The regulator also said it can publish blacklists, warn the public, and seek court action to block websites. Reuters reported that AMF president Marie-Anne Barbat-Layani told reporters it was “very, very urgent” for firms to complete their license applications.
The rollout is still uneven across the region. The report noted that Poland’s president stalled a MiCA-aligned crypto bill despite the EU deadline, while Italy imposed an earlier local deadline for registered providers to seek approval or begin winding down.
Users may need to reverify accounts, withdraw assets, or switch platforms
The deadline will not hit every customer in the same way. Accounts held at licensed exchanges should continue to operate. If a platform shifts business to an approved European entity, users may be asked to accept new terms, complete identity checks again, or confirm which legal entity now holds the account.
Unlicensed providers, by contrast, will need to stop accepting new deposits and guide users to withdraw assets, close positions, or move funds to licensed firms or self-custody wallets. ESMA warned that MiCA protections apply only to the authorized EU entity and do not necessarily extend to other companies using the same brand.
An OKX Europe analysis found that 60% of European crypto users still use exchanges without MiCA authorization. The same analysis said that from May 2025 to May 2026, exchange apps in Europe recorded 18.5 million downloads, and 7.6 million of those went to platforms without a valid license.
For users, the immediate task is practical: check the ESMA Interim MiCA Register, read notices from their platform, and move assets before access terms change.