Crypto Firms Face Anti-Money Laundering Compliance Test as MiCA Transition Ends

The Markets in Crypto-Assets regulation, or MiCA, replaced fragmented national regimes with a single rulebook for exchanges, brokers and custodians across the 27-nation European Union. The framework became fully applicable on Dec. 30, 2024, while legacy providers received an up-to-18-month transition. A license from one member state can be passported across the bloc, raising governance, capital and anti-money-laundering standards and making ESMA’s public register a key tool for customers checking whether a provider is legitimate.

That transition ended on July 1, 2026. Unauthorised firms must stop onboarding and marketing to EU clients, restrict services and wind down in an orderly way. ESMA, the European Banking Authority and the European Commission have warned that fraudsters are exploiting the disruption by posing as departing crypto platforms, regulators or asset-recovery agents, then demanding fees, personal data or wallet credentials. Europe had more than 3,000 providers registered under old national systems, while only about 244 had MiCA authorisation around the deadline.

The European Union's Markets in Crypto-Assets regulation, or MiCA, became fully applicable on December 30, 2024, creating a harmonized licensing system for crypto-asset service providers across member states. It also introduced disclosure, client-asset protection and anti-money-laundering requirements. The regime's “single passport” determines whether firms can remain in the EU market and is seen as a key threshold for integrating the crypto industry with traditional finance.

MiCA's transition period of up to 18 months expired on July 1, 2026, and the European Securities and Markets Authority, or ESMA, has required unauthorized firms to stop providing services. Market estimates suggest more than 80% of exchanges could exit and about 10 million users may need to move to other platforms. Coinbase, OKX and Kraken have secured licenses, while Germany is among the leaders in authorization progress across member states.