The European Union's Markets in Crypto-Assets framework reaches a key milestone on July 1 as the transitional period for unlicensed firms expires.
Dozens of crypto exchanges without MiCA authorization must halt or restrict services after the deadline. European regulators have advised unauthorized providers to wind down operations and assist customers in moving to licensed platforms or self-hosted wallets.
Industry estimates indicate that as many as 80 percent of Europe's roughly 3,000 pre-MiCA virtual asset service providers may not continue. Only about 230 to 244 firms have secured MiCA authorization so far.
Executives have highlighted the impact on users. Alex Fazel of SwissBorg said, "When a platform pulls back, users unfortunately absorb the shock." Erald Ghoos of OKX Europe added that many smaller entities cannot afford compliance costs.
Fines of up to 12.5 percent of annual turnover have been proposed for major stablecoin issuers that breach the rules. Exchanges including Binance have already scaled back services in the region.
