While the European Union is tightening its supervision of the crypto asset market, the European Securities and Markets Authority ESMA announced that all crypto companies operating without a license in the union must terminate their activities by July 1. It was stated that organizations that do not comply with the rules after this date may face sanctions.
Transition period ends
The decision was taken as the transition period under MiCA, known as the Crypto Asset Markets Regulation, nears its end. Crypto companies were given a period of 18 months to adapt to the new framework. With the end of this period, it is aimed to fully implement uniform rules in the European market.
Mini dictionary: MiCA is the European Union’s regulatory framework that sets common rules for crypto asset service providers and issuers. ESMA is the institution that supervises capital markets throughout the union and supports harmonization of practice among national authorities.
According to ESMA’s statement, this step aims to end the fragmented structure that has been shaped under different national licensing regimes for years. The regulatory body emphasized that with MiCA, a common audit structure will replace the standards that remain scattered among member countries.
ESMA stated that unauthorized crypto asset service providers must liquidate their activities in an orderly manner as the MiCA transition period expires.
Compliance pressure has increased for thousands of companies
The data also reveals the scope of the transformation. It is estimated that there were more than 1,200 crypto companies previously operating under national licensing systems, and approximately 75% to 83% of them still do not have a MiCA license.
| Title | Data |
|---|---|
| Transition time | 18 months |
| Number of companies operating under national regimes | more than 1,200 |
| Estimated proportion not having a MiCA license | Between 75% and 83% |
| deadline | July 1 |
The regulatory authority does not want these companies to withdraw suddenly from the market, but to conduct a controlled closure process. Accordingly, companies are expected to prepare plans that will protect customers and reduce the risk of disruption in market functioning.
Customer information and money laundering controls will continue
An unlicensed crypto company leaving the market must clearly inform its users throughout the process. Clear announcements are required to be made to customers about deadlines, account closure procedures and fund withdrawal steps.
ESMA reminded that companies’ obligations to combat money laundering continue during the closing process. It will be necessary to control the resulting transactions and maintain compliance standards until the activities are completely completed.
It was emphasized that platforms that remain unlicensed after July 1 will not be able to benefit from the protections provided by European law and that it is important for investors to check ESMA’s temporary MiCA registry before receiving services.
The regulator also issued a final warning to investors. While it was stated that platforms that remain unlicensed after July 1 will be excluded from the protections provided by European Union law, users are advised to check whether the relevant service provider is included in ESMA’s temporary MiCA records before handing over their assets.
