EU Crypto Firms Face Mass License Loss on July 1 Deadline

The European Union's MiCA transition period is set to end on July 1, 2026, marking a significant deadline for crypto exchanges, brokers, and wallet providers. According to Hogan Lovells, approximately 75% of pre-MiCA provider base may lose registration status as transition periods expire.

The gap between old registrations and new licenses remains wide, with Europe having over 3,000 virtual asset service providers in 2024, but only 194 authorized crypto-asset service providers in May 2026, including credit institutions. The EU's MiCA law uses passporting, which allows a company licensed by one national regulator to notify other authorities and serve clients across all 27 EU member states.

National regulators are preparing for enforcement, with France making one of the clearest warnings. The AMF said only authorized crypto-asset service providers can serve French clients from July 1, and those that continue without approval face a two-year prison sentence and a €30,000 fine under French rules.