Starting July 1, crypto companies without a MiCA license must cease serving clients in the European Union, according to ESMA.
The regulator has required service providers to prepare a business wind-down plan in advance.
According to Hogan Lovells, only 194 companies had obtained official authorization by May, a small fraction of the 3,000 firms previously operating in the region. It is expected that about 75% of the existing platforms will close or exit the European market.
For regular users, this means account blockages. Exchanges without licenses will stop accepting deposits and require users to withdraw their funds.
Traders in France will be most affected, as local regulators have threatened violators with criminal penalties and fines.
MiCA requirements have already impacted the stablecoin market. Major exchanges like Binance and Kraken have begun delisting USDT as the asset does not comply with regulations. Regulated tokens such as USDC are taking its place.
Earlier in June, the New York State Department of Financial Services and the European Banking Authority signed a memorandum of understanding for joint oversight of the “stablecoin” market.
