July 1 MiCA Deadline Threatens Thousands of European Crypto Firms

Crypto exchanges and users are set to be impacted by the July 1 deadline for compliance with Europe’s Markets in Crypto-Assets Regulation (MiCA), according to multiple media reports.

NewsBTC reported Monday (June 15) that crypto service providers that are not properly licensed in the MiCA framework may face restrictions, wind-down plans or changes to user access in the relevant jurisdictions, while crypto users are questioning whether their exchange is authorized, transitioning or preparing to limit services.

CryptoSlate reported Sunday (June 14) that 194 crypto firms were licensed under MiCA as of May and that there were 3,000 registered crypto firms across the European Union. The gap between those numbers means thousands of unlicensed crypto firms are expected to stop serving EU customers or shut down when MiCA’s July 1 deadline arrives, according to the report.

Users are likely to see notices to withdraw their funds from platforms that haven’t been licensed, to agree to new terms and reverify their identities from platforms that shift their customers to a licensed sister company, or continued normal operation at platforms that that already hold a MiCA license or operate through a licensed European arm, per the CryptoSlate report.

Cointelegraph reported June 3 that MiCA requires EU member states to give national authorities powers to order crypto asset service providers to halt their services, compel client offboarding, name firms publicly and impose fines for unauthorized activity.

The Cointelegraph report said that between May 2025 and May 2026, there were 18.5 million crypto app downloads in Europe and that 7.6 million of those downloads were to exchanges that are not MiCA-authorized providers.

PYMNTS reported in April that the European Securities and Markets Authority (ESMA) reaffirmed that the MiCA grace period was closing fast and that the transitional window for the policy framework expires on July 1.

MiCA’s stricter implementation phase brings caps on usage, tighter transaction rules and new licensing demands. Any firms offering crypto asset services in the EU without formal authorization must cease operations across member states and either execute orderly wind-downs, transfer client assets or leave the market entirely, according to the report.