Europe's watchdog orders unlicensed crypto firms to begin exiting as MiCA grace period ends July 1

Europe's markets regulator ESMA has instructed crypto firms operating in the EU without authorization to start winding down their business immediately, ahead of the July 1 expiry of the MiCA transition period. The supervisor is pushing for an orderly withdrawal rather than a last-minute rush. ESMA said unauthorized providers must stop onboarding new EU clients, cease all marketing, and restrict activity to assisting existing users with selling, transferring, or closing positions. Custody services may continue only for as long as needed to complete an exit, and anti-money-laundering checks must remain in place throughout. The guidance also applies to non-EU firms serving EU clients, including business-to-business services. ESMA (@ESMAComms) warned users that clients of unlicensed providers do not benefit from MiCA's investor protections and directed them to the ESMA Register to confirm whether a platform is authorized.