MiCA regulation triggers closure of 1,700 crypto platforms in EU

The implementation of the Markets in Crypto-Assets (MiCA) regulation in the European Union has led to a significant restructuring of the digital asset market. Following the regulation's entry into force on July 1, 2026, more than 1,700 unauthorized crypto platforms have ceased operations within the EU.

As of August 12, the European Securities and Markets Authority (ESMA) registry shows only 329 entries for authorizations, representing 324 identifiable legal entities. Of these, only 21 entities are permitted to operate trading platforms, while custody and transfer services remain more common.

The transition poses challenges for up to 10 million users who may need to migrate assets to authorized platforms. Authorities have warned of potential scams targeting users during this migration period. To operate as a Crypto-Asset Service Provider (CASP), applicants must undergo a substantive regulatory process involving the evaluation of governance, financial substance, and operational compliance, rather than a simple registration exercise.