EU MiCA Grace Period Nears End, With 75% of Crypto Firms Facing Loss of Operating Status

The European Union's grace period under MiCA, the bloc's crypto-asset regulatory framework, will end on July 1, raising the prospect that a large number of firms could lose their ability to operate.

Wu Blockchain reported on June 15 that crypto exchanges, brokers and wallet service providers that fail to obtain licenses after the grace period expires will no longer be allowed to serve users in the EU.

MiCA, short for Markets in Crypto-Assets Regulation, creates a unified regulatory framework for crypto assets across the EU. Under the rules, companies may operate only after receiving formal approval from regulators.

So far, only a small number of firms have obtained licenses. As of May, just 194 companies had secured MiCA licenses, compared with more than 3,000 crypto firms registered in the EU in 2024.

Wu Blockchain said about 75% of existing operators could lose their eligibility to do business after MiCA takes effect.

Platforms that fail to obtain licenses will have to stop accepting new deposits. They will also need to guide existing customers through asset withdrawals or transfers to licensed providers.

Regulators in some EU member states are also considering additional sanctions against unlicensed operators, including website blocks and public warning lists.