ESMA Sets July 1 2026 Deadline for Unlicensed Crypto Firms in EU

The European Securities and Markets Authority (ESMA) issued a final warning that all crypto‑asset service providers operating in the European Union without a licence must cease activities by 1 July 2026, the end of the MiCA transition period. More than 1,200 platforms previously operated under fragmented national rules; regulators estimate that 75‑83 % remain unlicensed, meaning hundreds could be forced to exit the market. Firms must inform customers, facilitate the transfer of assets to authorised platforms or personal wallets, and maintain AML controls during the shutdown. ESMA advises users to verify a provider’s status on the temporary MiCA register and move their holdings if the firm lacks a licence.

Separately, Japan’s government approved a reform to reclassify crypto assets as financial instruments from 2027, moving them from the Payment Services Act to the Financial Instruments and Exchange Act, and paving the way for a new stablecoin issuance by SBI Holdings.