MiCA Deadline for Crypto Companies in the European Union Approaches

The EU's MiCA regulation governing the crypto-asset market will fully enter into force on July 1. With the end of the transition period, all crypto-asset service providers (CASPs) operating under national regimes must either obtain a MiCA license or cease serving EU customers. Cointelegraph.com reports .

According to a representative of the European Securities and Markets Authority (ESMA), organizations without authorization will be prohibited from operating within the Union from this date. Companies must not rely on a pending transitional status while awaiting licensing decisions and should proceed with plans to wind down operations or migrate clients.

In France, 19 crypto providers have been licensed so far, with nearly 25 more applications under review. The country's financial markets regulator (AMF) warns that providing unauthorized crypto services is a criminal offense punishable by up to two years in prison and a fine of EUR 30,000.

Germany has also set a June 30 deadline for obtaining licenses under its national legislation. The BaFin regulator stated that appropriate measures will be taken where necessary. In Austria, the grandfathering period under the old regime has already ended, and all exchanges now operate under licenses.

This strict deadline may force many crypto companies to temporarily suspend operations, which is expected to affect millions of users on platforms whose applications are still under review.