ESMA urges unauthorized crypto providers to wind down as MiCA transition ends July 1
The European Securities and Markets Authority (ESMA) has called on crypto-asset service providers operating in the European Union without authorization under the Markets in Crypto-Assets Regulation (MiCA) to wind down their activities in an orderly manner as the regulation’s transitional period ends on July 1.
MiCA transition closes: authorization now required
From July 1, only firms authorized as crypto-asset service providers (CASPs) under MiCA by their national competent authorities may continue serving EU clients. The end of the transition means temporary national regimes that allowed legacy providers to operate without full MiCA authorization lapse across the bloc.
ESMA’s call focuses on consumer protection and market integrity, stressing that firms lacking authorization should cease offering in-scope services to EU residents and proceed with an orderly wind-down.
What firms should do
- Stop providing or marketing in-scope crypto-asset services in the EU unless authorized under MiCA.
- Communicate clearly with clients about service suspension and timelines.
- Facilitate the return or transfer of client assets and settle outstanding positions where applicable.
- Ensure records, reporting, and client communications meet applicable legal and supervisory expectations.
Why this matters
MiCA establishes a harmonized EU framework for crypto-asset issuance and services, including licensing, conduct of business, prudential safeguards, and market-abuse rules. The regulation entered into force in 2023, with stablecoin-related provisions applying from June 2024 and the broader CASP regime effective from December 2024, followed by a limited transition period now ending on July 1.
With the transition closed, supervision shifts fully to the MiCA rulebook, tightening compliance requirements for exchanges, custodians, brokers, and other service providers operating in the EU. ESMA, working with national authorities, has signaled closer oversight and enforcement to ensure a consistent single market for crypto services across Member States.