MiCA Deadline Approaches as EU Crypto Firms Face Licensing Challenge
- The MiCA regulation’s transition period ends on July 1, requiring EU crypto firms to obtain a full CASP license or cease operations.
- Only about 210 out of over 1,200 VASPs have secured full authorization, leaving approximately 83% unlicensed.
- ESMA confirmed that pending applications offer no protection beyond the deadline, emphasizing the need for compliance by July.
- A CASP license can be “passported” across the EU, allowing firms to operate in all member states with a single authorization.
As the July deadline looms, many crypto firms in the EU face significant operational challenges due to insufficient licensing under MiCA regulations. The European Securities and Markets Authority (ESMA) has made it clear that pending applications will not shield companies from enforcement actions after this date.
With only a small fraction of firms licensed, there is potential for market disruption and consolidation among larger platforms that have already secured authorization. (Source)
