The European Securities and Markets Authority (ESMA) confirmed that the transitional period for regulating the crypto market under the Markets in Crypto-Assets (MiCA) framework will end on July 1, 2026. After this date, companies without a license will be required to cease operations with EU clients.
According to ESMA, crypto companies that didn’t obtain authorization must prepare in advance and implement a wind-down plan. Such plans must ensure a safe offboarding of clients, including transferring their assets to licensed providers or personal wallets, as well as notifying users in advance.
The regulator requires all unauthorized crypto service providers to fully terminate their activities by the specified date. At the same time, licensed companies must actively migrate clients to regulated platforms before the end of the transitional period. Particular attention is being paid to compliance with anti-money laundering (AML) and Know Your Customer (KYC) requirements.
ESMA also emphasizes that companies registered outside the EU aren’t allowed to provide crypto services to European clients, except in strictly limited cases where the initiative comes from the client. These restrictions also apply to business-to-business interactions, including a ban on outsourcing key functions, such as asset custody, to unauthorized entities.
National regulators across EU member states are expected to enforce these requirements by:
- verifying that unlicensed companies have wind-down plans in place;
- preventing illegal activities;
- ensuring the proper transfer of clients to licensed market participants.
ESMA also warns investors that after July 1, 2026, user protection will apply only to licensed companies. The regulator recommends checking the provider’s status in the official register and, if necessary, transferring assets to regulated entities or personal wallets to reduce the risk of losing funds.
The MiCA regulation came into force on December 30, 2024, but ESMA introduced an 18-month transitional period to allow companies to adapt to the new regulatory requirements.
