MiCA Grace Period Nears End, Putting Unlicensed Crypto Firms in Europe at Risk of Shutdown
Summary
- Many crypto firms that failed to secure approval are at risk of shutdown as the MiCA transition grace period ends this month.
- As of July 1, the operating permits of crypto firms that had operated under existing national licenses will expire, while only 231 CASPs have received MiCA approval.
- The head of OKX Europe said 80% of Europe’s crypto firms will not survive after MiCA takes effect and that stablecoin services also require a PI or EMI license.
Forecast Trend Report by Period
The grace period for transitioning to a license under Markets in Crypto-Assets, or MiCA, the European Union’s unified crypto regulatory framework, will end this month, putting many firms that failed to win approval at risk of shutting down.
CoinDesk reported on June 29 that crypto firms operating under existing national licenses will see those permits expire on July 1 under the MiCA regime, which allows companies to provide services across all 27 EU member states.
Before MiCA was introduced, more than 3,000 firms across Europe were registered as virtual asset service providers, or VASPs, as of 2024. More than 1,400 of those registrations were in Poland alone. As of this month, however, only 231 crypto-asset service providers, or CASPs, had received MiCA authorization.
Erald Ghoos, chief executive officer of OKX Europe, told CoinDesk that 80% of Europe’s crypto firms will not survive after MiCA takes effect. He said the problem is not limited to MiCA itself, but also reflects the breadth and weight of European regulation more broadly. Ghoos added that even firms that obtain a MiCA license must also secure a payment institution, or PI, license or an electronic money institution, or EMI, license to offer stablecoin services.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.