Where does everyone fit as the EU crypto market enters a new regulatory era?

The transitional period for proper licensing under MiCA, the pan-European regulatory framework for cryptocurrencies, expires on the first day of July.

The window which allowed companies to continue to operate while applying for authorization is now closing with consequences for businesses and their clients.

Europe’s transition to MiCA regulation ends now

Crypto service providers (CASPs) across the European Union (EU) had until July 1, 2026 to obtain a new license under the Markets in Crypto Assets (MiCA) law.

The comprehensive legislation officially entered into effect at the end of June, approximately three years ago, but certain provisions were applied in several stages.

Rules governing stablecoins, or cryptocurrencies backed by other assets including fiat currencies, became applicable a year later.

Specific requirements for CASPs and digital token issuers came into full force in late December 2024, determining the operating rules for such platforms.

An 18-month transitional period for cryptocurrency firms already active under existing national laws in the member states to obtain MiCA approval expired on July 1, 2026.

These can no longer rely on the temporary solution to serve EU customers in other jurisdictions. From now on, the common framework becomes the legal basis for their operations in the 27-strong bloc.

Starting today, only a granted MiCA authorization permits continued service across the Union, as noted in an article published by the crypto analytics firm Elliptic on Tuesday.

There are exceptions, however, as several EU nations, such as the Netherlands, Finland, Latvia, Hungary, Slovenia, and Sweden opted for shorter transitions which ended in 2025.

Besides, a pending application is not enough, and both legal entities and private individuals have been advised to check if the organization they are dealing with is actually licensed.

Germany has issued the most authorizations

Only a handful of cryptocurrency firms had received MiCA licenses ahead of the deadline’s expiry, according to the European Securities and Markets Authority (ESMA).

As of June 30, there were just 213 entries in the weekly updated register maintained by ESMA, spread across 23 jurisdictions.

The current data shows that authorization is heavily concentrated in a few major markets. Germany has issued 55 CASP approvals, followed by the Netherlands with 26.

France has 19 so far, and the crypto-friendly island nation of Malta is right behind it with 15. The international financial hubs of Ireland and Cyprus are next with a dozen each.

Thus, the top five jurisdictions account for more than half of the total number of registered entities. It’s worth noting that a single license issued by a national authority would suffice.

Key crypto firms are yet to obtain MiCA licenses

Even major players in the industry, such as the world’s largest exchange for digital assets, Binance, have until now failed to gain regulatory approval under MiCA in time.

Greece, the country where the global coin trading platform initially applied for one, before eventually trying in France, is among several nations that are yet to issue a European crypto license.

The group includes Poland, which has been struggling to transpose the EU crypto legislation into national law for months, and other Eastern European countries such as Hungary and Romania, but also Portugal.

Critics say Europe’s strict new rulebook for trading venues, custodians, wallet providers and coin issuers is actually driving many crypto businesses out of the Old Continent, as reported by Cryptopolitan.

While ensuring consumer protection has been declared a priority by the authors of the harmonized framework, several million customers are expected to remain cut off from services and access to the crypto market as a result of delayed implementation and failed MiCA licensing.

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