The European Securities and Markets Authority (ESMA) has called on unauthorized crypto-asset service providers to wind down their operations in an orderly manner as the Markets in Crypto Assets (MiCA) transitional period ends on July 1. Europe had over 3,000 registered virtual asset service providers (VASPs) as of 2024, but only 244 are now authorized under MiCA. Industry observers estimate up to 80% of pre-MiCA firms may face closure due to the high cost and complexity of compliance. Poland, which had over 1,400 VASPs, is particularly affected, with only one firm reportedly holding a MiCA license as of June 2026. The regulatory burden includes costs for licenses and compliance staff, potentially stifling smaller players and consolidating the market among larger entities. However, some legal experts predict varying levels of enforcement across EU member states, with some regulators potentially being lenient. ESMA emphasized that firms must protect client interests during wind-down. The deadline could reshape Europe's crypto landscape, with concerns about reduced innovation and market access for smaller firms.

Key facts

• ESMA orders unauthorized crypto firms to wind down by July 1, 2026 MiCA deadline.
• Only 244 of over 3,000 pre-MiCA VASPs are authorized under MiCA.
• Poland had ~1,400 VASPs; only one firm holds a MiCA license there.
• Up to 80% of crypto firms may close due to compliance costs.
• Legal experts differ on enforcement leniency across EU states.