EU Unveils Hardline Approach to Unlicensed Crypto Firms

The European Union is tightening its grip on unlicensed crypto firms, giving them until July 1 to shut down. The European Securities and Markets Authority (ESMA) has warned that any firm operating without a MiCA license will face severe enforcement action.

For 18 months, crypto companies had time to adapt to the new framework under the Markets in Crypto-Assets (MiCA) regulation. However, estimates suggest that between 75% and 83% of these firms still do not hold a MiCA license.

Unlicensed crypto firms are required to stop accepting new customers from the European Union immediately and end all marketing and advertising activities across the region. They must also follow structured wind-down plans designed to protect customers and reduce market disruption.