July 1, 2026 marks the expiry of the temporary authorisation that allows crypto firms to continue operating in the EU while awaiting a full MiCA licence, thereby creating a significant challenge for everyday users.
MiCA obliges every exchange, broker, or wallet service seeking EU customers to obtain an official licence. According to Hogan Lovells, only 194 crypto firms—including banks—were licensed in the EU by May 2026, despite more than 3,000 registered entities in 2024.
Approximately 75% of these legacy firms are projected to lose their operating rights when the grace period ends. While legislators claim the legislation safeguards consumers, in practice it restricts access for users of platforms that fail to secure a licence before the deadline.
With less than three weeks remaining until the permission expires, the deadline may appear distant, yet the process of obtaining a licence often takes many months, leaving companies without existing licences effectively out of time.
In the coming weeks, these firms must either wind down operations orderly, transfer customers to a licensed competitor, or exit the European market entirely; ESMA has indicated that such shutdown plans should already be in place well before July 1.
What the cutoff means for people holding crypto in Europe
User impact varies by platform. If an exchange already possesses a MiCA licence or operates via a licensed EU entity, its accounts should continue functioning normally.
If a platform transfers its users to a licensed sister company, customers may receive requests to accept revised terms and undergo identity verification, as EU regulations require licensed firms to conduct full identity and AML checks before the deadline.
Unlicensed platforms will begin rejecting new deposits and will encourage users to withdraw funds to personal wallets or other licensed exchanges.
The greatest pressure will be felt in France, where regulators are treating the cutoff seriously. The French financial regulator, AMF, instructed unlicensed firms to cease operations on July 1 and warned that non‑compliance constitutes a criminal offense punishable by up to two years’ imprisonment and a €30,000 fine.
AMF is expected to add unlicensed providers to a public blacklist, issue public warnings, and seek court orders to block their websites. During a press conference in Paris on May 28, AMF President Marie‑Anne Barbat‑Layani emphasized the urgency of licence applications and cautioned that firms continuing to serve EU customers without a licence risk being sued.
Most users, however, will not encounter problems. They can verify whether their platform holds a MiCA licence or operates via a licensed EU entity by consulting their national regulator’s register or the EU’s central list of licensed firms.
A functional app or polished website merely indicates a company is still operating, whereas the official register confirms whether it is legally permitted to serve users after the deadline.
MiCA will reshape Europe’s crypto market
Compliance with MiCA is costly, placing the financial burden on banks, large exchanges, and well‑funded platforms that can afford the necessary legal counsel, capital, and compliance staff. Consequently, the market becomes dominated by a small number of licensed participants.
Poland alone accounted for over 1,400 of these legacy firms, and the small, lightly regulated operators throughout Europe are the most likely to disappear first as their registrations expire.