ESMA, the European Securities and Markets Authority, has issued its final warning against crypto asset service providers operating without permission within the European Union. While the Authority wants platforms that do not have a license to immediately terminate their activities, it stated that companies that do not comply with the rules will face serious sanctions.
Transition period ends
The 18-month transition period provided under MiCA, known as the Crypto Asset Markets regulation, will end on July 1, 2026. With this date, the European Union will move to a single common licensing regime, leaving behind the scattered national frameworks applied to date in the digital asset sector. ESMA clearly announced that no additional time will be granted in this process.
Mini dictionary: MiCA is the common regulatory framework created by the European Union for crypto assets and companies serving in this field. ESMA is the regulatory authority that oversees securities markets across the EU and promotes uniformity of enforcement among national supervisors.
According to industry data, there were previously more than 1,200 companies operating under different national rules. It is estimated that approximately 75% to 83% of these companies were still unlicensed as the deadline entered. This table indicates that hundreds of platforms may have to withdraw from the European market.
ESMA made it clear that no additional period will be granted for service providers who do not have a license and that continuing their activities within the European Union after July 1, 2026 may face sanctions.
Clear notification obligation to customers
Companies that are winding down their operations need to regularly inform their customers of upcoming dates and provide clear guidance on how to move assets safely. According to the regulatory framework, platforms that will exit the market will not be exempt from security obligations during the closure process.
These companies are required to maintain anti-money laundering controls during the closing phase and continue to screen all exit transactions for the risk of illegal activity. This is to ensure that platform closures do not create an uncontrolled gap.
Warning to individual investors
ESMA also issued a direct warning to individual investors. The Authority emphasized that if a platform has not received a license as of July 1, 2026, user assets will no longer benefit from the protections provided by European Union law.
Customers were advised to check the legal status of the platform from which they receive service through the ESMA Temporary MiCA Registry and, if there is no license, to transfer their assets to an approved platform or personal wallet before the account is closed.
For this reason, users are recommended to verify whether the provider they receive service from operates legally through ESMA’s temporary MiCA registration. Investors working with an unlicensed provider are asked to move their assets to an authorized platform or to their own wallets before their accounts are compulsorily closed.
