Crypto firms face July 1 EU cutoff as MiCA grace period ends

The ESMA says crypto companies without MiCA authorization must stop serving EU clients from July 1, even if their licence applications remain under review.

The European Union’s Markets in Crypto Assets Regulation hits a hard deadline on July 1 when the transitional period ends and in-scope crypto asset service providers operating under national regimes must either hold a MiCA licence or stop serving EU clients.

A spokesperson from the European Securities and Markets Authority (ESMA) told Cointelegraph that from that date, non-authorized entities “will not be allowed to operate within the EU” and should implement wind-down and client migration plans rather than rely on open-ended transitional status while awaiting a decision.

The deadline could force some crypto firms to suspend EU operations while their applications remain under review, potentially affecting millions of users who continue to engage with platforms that are not yet authorized under MiCA.

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