EU to Fully Enforce MiCA From July 1, Ban Unlicensed Crypto Firms

The European Union’s Markets in Crypto-Assets regulation, or MiCA, will take full effect on July 1, with unlicensed crypto firms set to be barred from operating.

The move is drawing attention to the possibility that some companies that fail to secure licenses may have to suspend services.

Cointelegraph reported on June 3 that the EU will fully apply the MiCA framework from July 1 and prohibit unlicensed crypto-asset businesses from operating.

Crypto-asset service providers, or CASPs, that had been operating under country-by-country regulatory regimes will have to obtain a MiCA license or stop offering services to EU users.

Some firms whose license reviews have not been completed could temporarily suspend their EU operations, raising the possibility that millions of users may be affected.

According to France’s Autorité des Marchés Financiers, 19 crypto-asset service providers have received MiCA approval so far. About 25 license applications remain under review.

Ahead of MiCA’s rollout, exchanges, custody firms and stablecoin issuers have been racing to secure licenses. The European crypto market could be reshaped around a small group of authorized operators after the rules take effect.