The European Securities and Markets Authority (ESMA) has released its final warning to crypto asset service providers operating without authorization in the European Union. The regulator has demanded that unlicensed platforms immediately begin the process of winding down their operations, stating that companies failing to comply face serious sanctions.
Transition period nears its end
Under the Markets in Crypto-Assets (MiCA) regulation, an 18-month transition window will close on July 1, 2026. After this date, the EU will abandon its patchwork of national rules for digital assets and fully adopt a unified licensing regime. ESMA has made it clear that no extensions will be granted beyond this deadline.
Mini glossary: MiCA is the European Union’s common regulatory framework for crypto assets and companies offering services in this sector. ESMA is the supervisory authority that oversees securities markets across the EU and fosters harmonized enforcement among national regulators.
According to industry data, more than 1,200 companies previously operated under varying national rules. As the final deadline approaches, estimates suggest that around 75% to 83% of these firms have still not secured a license. This scenario points to the likelihood that hundreds of platforms may be forced to exit the European market.
ESMA has unequivocally stated that unlicensed service providers will not be granted any further extensions and operating within the European Union after July 1, 2026, will trigger enforcement actions.
Mandatory customer notification
Companies preparing to leave the market are required to keep their customers regularly informed about the upcoming deadline. They must also offer clear guidance on how assets can be safely transferred. According to the regulatory framework, platforms winding down must still comply with all security obligations during their exit processes.
These firms are obliged to continue anti-money laundering checks and carefully screen all withdrawal activities through the closure period. The intention is to prevent any regulatory gaps as platforms depart from the market.
Warning to retail investors
ESMA also addressed retail investors directly, warning that if a platform remains unlicensed as of July 1, 2026, users’ assets will no longer benefit from the legal protections guaranteed under EU law.
ESMA advised customers to check the legal status of their platform through its Temporary MiCA Register and to transfer assets to a licensed platform or personal wallet before accounts are closed, if their provider is not authorized.
Accordingly, users are urged to verify their service provider’s legal status using ESMA’s temporary MiCA register. Investors working with unlicensed firms should move their assets to an authorized platform or personal wallet before forced account closures are enacted.
