MiCA Deadline: 75% of EU Crypto Firms Face License Loss on July 1

The European Union’s MiCA transition period ends July 1, 2026. After that date, crypto-asset service providers without a license can no longer serve EU clients. ESMA said entities continuing operations will breach EU law and must stop. The regulator expects unapproved providers to have orderly wind-down plans and help clients transfer crypto to an authorized provider or self-hosted wallet.

The gap between the old registration regime and the new licensing system is wide. Hogan Lovells said Europe had more than 3,000 virtual asset service providers in 2024. By May 2026, only 194 were authorized as crypto-asset service providers, including credit institutions. The law firm expects around 75% of the pre-MiCA provider base to lose registration status as transition periods expire.

MiCA uses passporting: a license from one national regulator allows serving clients across all 27 EU member states. That puts national approval speed at the center of the July transition. France has made one of the clearest warnings. The AMF said only authorized providers can serve French clients from July 1. Providers that continue without approval face a two-year prison sentence and a €30,000 fine under French rules. AMF president Marie-Anne Barbat-Layani told Reuters it was “very, very urgent” for firms to complete license applications. The AMF also said it can publish blacklists and seek court action to block websites.