The European Securities and Markets Authority (ESMA) has warned that unauthorised crypto-asset service providers (CASPs) must wind down activities as the MiCA transition period comes to a close.
The deadline for CASPs to obtain authorisation required under the MiCA regulation came into effect on 1 July 2026, meaning that any CASPs that have not been authorised by this date must enable an orderly exit from the market, while also protecting investor interests.
Prior to the deadline, authorised CASPs were also informed that they must actively prepare for the migration of existing EU clients by integrating robust AML/CFT-compliant onboarding processes.
Moreover, entities established outside of the EU will not be able to provide crypto-asset services to EU clients, and CASPs cannot outsource certain services to unauthorised firms.
Commenting on the transition, Stefano Chierici, senior product manager, financial information at SIX, said: “Just as MiCA begins to bed in, it could be reshaped. The European Commission’s targeted consultation reflects how quickly digital asset markets — and international regulatory frameworks — have moved since MiCA was designed.
“Against the backdrop of developments such as the US GENIUS Act, questions around stablecoin equivalence, third-country recognition and cross-border market-access are becoming increasingly important. That is understandable as greater regulatory alignment gives market participants a clearer basis on which to scale products and services across jurisdictions.”
In a public statement, ESMA set out key requirements for unauthorised CASPs including: immediately stopping EU client onboarding and solicitation, limiting the provision of services to actions necessary to sell or transfer crypto-assets, reallocate assets or close positions, and communicate clearly with clients about plans to safeguard assets and wind down activities.
ESMA also emphasised that CASPs should align with AML/CFT controls during the wind down process, including “customer due diligence measures, transaction monitoring, screening against restrictive measures and sanctions lists, suspicious transaction and activity reporting, record-keeping requirements, and compliance with applicable transfer of funds and crypto-asset transfer traceability obligations.”
ESMA’s statement regarding unauthorised CASPs has also received support from the French regulator, AMF, who reiterated that the orderly ceasing of activities is required.
Moreover, investors have been warned to check which provider is authorised, to ensure crypto assets can be transferred if necessary.
Chierici added: “The bigger issue is the blurred line between crypto-assets and tokenised traditional assets. If on-chain versions of bonds, shares or funds are brought within MiCA’s scope, banks and other regulated institutions could face an additional compliance layer for instruments already covered by existing securities regulation.
“The outcome of the review remains uncertain, but the direction of travel underlines the importance of regulatory and reference data across the digital asset chain, so firms can identify what they are trading, understand which rules apply and report it correctly.”