The MiCA transitional period ended at midnight July 1, 2026, barring more than 80% of formerly registered EU crypto firms from onboarding new customers. The European Securities and Markets Authority confirmed there would be no extension: any entity providing crypto-asset services without a license is now in breach of EU law.
Only about 210 of the 1,200-plus firms that previously held national VASP registrations converted to full CASP authorization, a conversion rate of roughly 17%, per Yahoo Finance. That leaves roughly 1,000 formerly registered providers barred from adding new EU clients as of today.
What unlicensed firms must stop
ESMA's June 23 public statement said unlicensed firms must stop onboarding new EU clients, opening new accounts and marketing to EU users. The authority had confirmed in April that the July 1 deadline applied across all member states, with no exceptions. Pending license status no longer grants operating rights.
Unlicensed firms may still hold client assets and execute transactions strictly needed for an orderly exit, including sales, transfers and position closures. They must communicate wind-down timelines to clients clearly and repeatedly. France's financial regulator has warned that continued operation beyond today exposes firms to criminal prosecution.
What clients lose
Clients of unauthorized providers are outside MiCA's protection regime. ESMA stated in its June 23 statement that investor safeguards, including asset segregation and client-fund protections, apply only to EU-authorized CASPs. Users of unlicensed platforms have no MiCA recourse.
Stablecoins split under MiCA
The enforcement also divides the stablecoin market. Circle holds EU e-money-token authorization for USDC and the euro-denominated EURC, the only stablecoins among the top ten by market cap that licensed EU platforms can continue to list.
Tether never applied for that authorization, so regulated EU exchanges have been delisting USDT ahead of today's cutoff. Individuals may hold USDT, but licensed EU platforms may not list it for customers.
The result is a market-wide reset: roughly 1,000 formerly registered firms are frozen out of new EU client business, while approximately 210 authorized CASPs absorb any migration.