The arrival of a key regulatory milestone under the Markets in Crypto-Assets (MiCA) framework in the European Union on July 1 is reshaping how crypto services operate across the region. Market participants estimate that, under pressure from the new requirements, dozens of platforms are either scaling back their offerings or leaving the market entirely, with the number of affected users potentially topping 10 million.
The European Securities and Markets Authority (ESMA) has warned that crypto-asset service providers operating without a MiCA license must cease operations after the deadline and ensure their clients are transferred to authorized providers or to self-custodial solutions.
The European Banking Authority (EBA), which oversees significant stablecoin issuers under MiCA, has proposed a penalty model that allows for fines of up to 12.5% of annual turnover for breaking the rules. Consultations on the draft run until September 28, after which the methodology's parameters will be finalized.
Before MiCA took effect, more than 3,000 registered virtual asset service providers were operating in Europe. Market participants estimate that up to 80% of them won't continue once the transition period ends. At the same time, larger platforms are pressing ahead with the MiCA authorization process or rethinking their product lineups.
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