EU Orders Unlicensed Crypto Firms to Wind Down Ahead of MiCA Deadline

The European Securities and Markets Authority (ESMA) has instructed unlicensed crypto firms to wind down their operations in the EU by July 1, as part of the transition to the Markets in Crypto Assets Regulation (MiCA).

According to ESMA, these firms must stop onboarding new clients, cease marketing services, and inform existing clients about the wind-down process. They must also adhere to anti-money laundering (AML) and terrorist financing procedures.

The MiCA regulation aims to bring uniformity and regulation to the crypto market in the EU. However, its implementation has raised concerns for some top industry players, such as Binance, which failed to obtain MiCA approval through Greece.

CryptoQuant analyst argues that the MiCA risk for Binance is 'overstated,' citing low EUR-denominated trading volumes and the exchange's dominance in offshore markets.