ESMA Orders Unauthorized Crypto Firms to Wind Down Before MiCA Deadline

Wind-down plans must comply with EU and national conduct rules as well as anti-money laundering and counterterrorism financing requirements. Providers must maintain customer due diligence, transaction monitoring, sanctions screening, suspicious activity reporting, record-keeping, and crypto-transfer traceability throughout the wind-down period.

When client accounts move to a MiCA-authorized CASP, the receiving provider must complete its own onboarding procedures, including customer due diligence and other AML/CFT checks. Firms outside the European Union were reminded they cannot solicit EU clients or provide MiCA services except under the regulation's narrow reverse-solicitation exemption.

Client Protections: Verify Authorization, Transfer Assets

“ESMA reminds clients of unauthorised CASPs, whether EU or non-EU entities, that they do not benefit from MiCA safeguards, including protections for client assets.”

Crypto users were encouraged to check the ESMA Register to see if their provider has authorization. If it does not, clients should act quickly by transferring assets to an authorized CASP or to a self-hosted wallet. Those facing difficulties should contact their provider first, ESMA said.

Coordination is underway with National Competent Authorities, the European Banking Authority (EBA), and the Anti-Money Laundering Authority (AMLA). Regulators may take coordinated enforcement action against unauthorized providers that continue operating after July 1, 2026. Crypto firms serving clients across the European Economic Area face shutdown risk if they lack MiCA authorization by that date.

The deadline expires July 1. ESMA and national regulators will monitor cross-border CASPs for compliance.