Only 7% of EU crypto firms hold licenses before MiCA deadline

The European Union's Markets in Crypto Assets Regulation will force crypto firms without authorization to cease serving EU clients from July 1, with only about 210 of 2,747 previously registered providers holding a license.

"Having an application in the queue will not shield companies from the deadline," Niall Esler, head of the regulatory and risk advisory practice at law firm Walkers, said. "Firms still serving EU clients without authorization after the transition ends will be operating unlawfully."

In France, 19 crypto asset service providers have been authorized so far, with roughly 25 applications still under review, a spokesperson for the Autorite des marches financiers told Cointelegraph. From July 1, unauthorized services are a criminal offense punishable by up to two years in prison and a 30,000-euro fine. Germany's BaFin has set a June 30 licensing deadline for firms operating under prior exemptions, while Austria ended its grandfathering period on Dec. 31, 2025, and has licensed nine CASPs to date.

The compliance gap could affect a substantial portion of European crypto users. According to analysis by OKX Europe, approximately 60% of European crypto users are actively engaging with platforms that hold no MiCA authorization, including some of the world's largest exchanges by trading volume. The European Commission has also launched a formal review of MiCA, adding regulatory uncertainty for firms still pursuing licensing.

National Regulators Take Divergent Approaches

France's AMF has warned it can blacklist unauthorized firms, issue public warnings and seek court orders to block websites targeting French users. Germany's BaFin said it may apply enforcement measures "where possible and appropriate," with some applications still under review. Austria's FMA reported "significant" application volume but declined to disclose how many are pending.

Major Exchanges Still Awaiting Approval

Several major exchanges are still awaiting MiCA authorization. Bitget applied for a license in Austria in 2025 and expects regulatory approval in the second quarter of 2026, its chief legal officer told Cointelegraph. Binance applied for a MiCA license in Greece in January through the Hellenic Capital Market Commission and is not currently listed among authorized providers.

The 7% authorization rate represents a sharp contraction from the 2,747 VASP registrations recorded across the EU in 2024. Estonia, once a major European crypto hub, saw its licensed providers fall to 40 in February 2025 from 641 in June 2021, illustrating the broader consolidation driven by the shift from national regimes to a unified European framework.

This article is for informational purposes only and does not constitute investment advice.