The European cryptocurrency market is facing one of the most important regulatory milestones in recent years. From July 1, 2026, the transitional period for the MiCA (Markets in Crypto-Assets Regulation) definitively ends. Cryptocurrency exchanges and other service providers will need to have a valid license under the new European rules or stop serving clients from the European Union.
According to the European Securities and Markets Authority (ESMA), companies without an approved license will not be authorized to operate in the EU from this date, even if their license application is still pending.
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Pending Application Is Not Enough
Some crypto firms have operated so far based on national licenses or exemptions that member states allowed during the transitional period. However, that is now coming to an end.
An ESMA spokesperson stated that companies without an approved license should begin preparing to terminate services or transfer clients to authorized platforms. According to the spokesperson, they cannot rely on being allowed to continue operations simply because their license application has not yet been reviewed. This could mean a temporary suspension of operations for some well-known crypto platforms in Europe and potentially affect millions of users.
France Warns of Criminal Prosecution
In France, for example, 19 crypto asset service providers (CASP) have been approved so far, while approximately another 25 applications are still pending.
The French regulator AMF warns that providing cryptocurrency services without a license is a criminal offense as of July. Violations carry a penalty of up to two years in prison and a fine of 30 thousand euros, approximately 740 thousand crowns.
The regulator can additionally blacklist companies publicly, issue warnings, or request the court to block access to websites of illegal providers.
Germany Tightens Oversight, Austria Already Ended Transition
Germany also requires all crypto firms to obtain a license by June 30 at the latest. The local regulator BaFin stated that it will use available enforcement tools if necessary.
Austria proceeded even more strictly. It did not extend the transitional period at all and ended the old licensing regime at the end of 2025. According to the Austrian regulator FMA, no crypto exchange is currently operating in the country without a MiCA license.
Austria has approved nine cryptocurrency service providers so far, describing interest in licenses as very high.
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Millions of Users May Be Using Unauthorized Platforms
Legal experts warn that many companies and users may be underestimating the scope of changes.
“If a firm continues to serve EU clients without a license after the end of the transitional period, it is acting unlawfully,” said Niall Esler from law firm Walkers.
MiCA gives national regulators extensive powers. They can order immediate cessation of services, termination of client relationships, publication of the company’s name, or impose high administrative fines.
This could affect a significant portion of European cryptocurrency investors.
Analysis by OKX Europe shows that between May 2025 and May 2026, approximately 18.5 million cryptocurrency app downloads were recorded in Europe. Of these, 7.6 million, or roughly 41%, were for platforms that are not listed in the MiCA license holder register.
According to OKX Europe CEO Erald Ghoos, however, the real problem may be even larger. App download statistics do not include users who access via web browsers or installed apps earlier.
Based on a combination of data on website traffic, search trends, and app downloads, OKX estimates that up to 60% of European cryptocurrency users actively use platforms that have not yet obtained a MiCA license.
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Major Exchanges Still Awaiting Approval
Among the companies still waiting for a European license are some well-known names.
The Bitget exchange filed for a license in Austria during 2025. According to its legal department, it expects approval in the second quarter of 2026 and will not offer services in the European Economic Area until then.
Binance is also seeking a license, the world’s largest cryptocurrency exchange by trading volume. It filed its application in January in Greece through the local Hellenic Capital Market Commission. However, it is not currently listed among approved MiCA providers and has not commented publicly on the status of the proceedings.
MiCA Goes Live
The European MiCA regulation was created to harmonize rules for the cryptocurrency sector across member states and increase investor protection. The end of the transitional period now represents the first real test of its effectiveness.
For European users, this means one thing: verify whether the platform they use has obtained a MiCA license. Otherwise, it may be forced to terminate its services in the European Union in the coming weeks.
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