Europe's Crypto Rulebook Is Fully in Force, and Most Firms Did Not Qualify
The EU's MiCA transition period ended on 1 July 2026. By April, 199 crypto firms across 23 countries had been authorised, while roughly 80% of the 1,200-plus firms registered under national rules failed to secure a licence. What changed for users.
By the UISC BD Editorial Desk · United Information Service Center · Published 13 September 2026 · 6-minute read
This article explains crypto regulation. It is general information, not financial or legal advice.
For years, a crypto company could operate in one EU country under one set of rules and in the next country under entirely different ones. The Markets in Crypto-Assets Regulation, known as MiCA, replaced that patchwork with a single licence. This summer, the grace period ran out.
What MiCA Is
MiCA is the European Union's comprehensive law for crypto-assets. It came into application in stages: rules for stablecoin issuers first, followed by rules for crypto-asset service providers (CASPs) — the exchanges, brokers, custodians and wallet providers most people actually use.
It sets requirements on how these firms are authorised, governed and capitalised, how they hold client assets, what they must disclose and how they handle complaints.
The Deadline That Just Passed
Firms already operating under national rules were allowed a transitional period to keep serving customers while they applied for a MiCA licence. That period ended on 1 July 2026.
Several countries, including France, Malta, Luxembourg and Estonia, used the full 18-month grandfathering window. After the deadline, unlicensed CASPs must stop serving EU clients.
The Numbers
- 199 CASPs had been authorised across 23 countries as of April 2026.
- About 80 percent of the more than 1,200 firms previously registered under national regimes failed to obtain a licence.
Some of those firms merged, some withdrew from the EU market, and some had never been more than a registration on paper. Either way, the number of companies legally serving European customers has fallen sharply, and the survivors face a much higher bar.
Passporting: One Licence, the Whole EU
A MiCA licence granted in one member state can be passported across the European Union. A firm authorised in, say, Luxembourg can serve customers in every other EU country without applying again.
That is a major commercial advantage, and it is one reason large exchanges invested heavily in authorisation.
What It Means If You Use Crypto in the EU
- Check that your provider is authorised. The EU's securities regulator, ESMA, publishes a register of MiCA-authorised service providers, and national regulators list the firms they have licensed.
- Watch for notices from your exchange. Firms that failed to secure a licence should have told customers how to withdraw or move their assets.
- Be wary of firms claiming a licence they do not have. The same clone tactics used by fake forex brokers apply — see how to verify a firm on a regulator's register.
What MiCA Does Not Do
It does not protect you from price falls. A licensed exchange can still sell you an asset that loses most of its value.
It is not deposit insurance. Crypto held with a licensed provider is not protected the way a bank deposit is.
It does not make a provider unhackable. Security standards reduce risk; they do not remove it, as the record Bybit theft showed.
It does not cover everything. Fully decentralised services and most NFTs fall largely outside its scope.
The Wider Picture
MiCA is the most complete crypto framework among major economies. The United States has taken a different route, legislating first for stablecoins through the GENIUS Act. For users anywhere, the direction is the same: fewer, larger, regulated providers — and a shrinking space for firms that cannot show who regulates them.
Related reading
- Prop Firm Challenges: Only About 7% of Buyers Ever Get Paid
- Stablecoins Explained: USDT, USDC and America's GENIUS Act
- Bitcoin ETFs Explained: $5.4bn Out in Six Months, $3.5bn Back in August
- Pig Butchering Scams: The Long Con Now Run by AI
Sources
- "MiCA in April 2026: the state of the EU crypto market," Binar — binar.com
- "Crypto regulations in the European Union: Markets in Crypto-Assets (MiCA)," Sumsub — sumsub.com
- "MiCA-licensed crypto exchanges," Paybis — paybis.com
