ESMA Outlines Expectations for Crypto Firms ahead of MiCA Deadline

The European Securities and Markets Authority (ESMA) has issued a statement reminding cryptocurrency firms that the transitional period under the Markets in Crypto-Assets Regulation ((EU) 2023/1114 (MiCA)) will officially expire on July 1, 2026.

After this date, any entity providing crypto-asset services to EU clients without a MiCA license will be in breach of EU law and must cease offering such services. ESMA has outlined expectations for authorized Crypto-Asset Service Providers (CASP) to actively manage the migration of existing clients ahead of the deadline.

Authorized CASPs are expected to apply robust onboarding processes to ensure full compliance with applicable Anti-Money Laundering (AML)/Countering the Financing of Terrorism (CFT) requirements. Additionally, ESMA reminds market participants that entities established outside the EU are not permitted to provide crypto-asset services to EU investors or solicit EU clients.