EU's MiCA Regulation Enters Full Enforcement July 1, Leaving Thousands of Exchanges Unlicensed

The European Union's Markets in Crypto-Assets (MiCA) regulation is set to fully come into effect on July 1, marking a significant shift for the crypto market. With only about 17% of previously registered exchanges holding CASP licenses under MiCA, investors are advised to verify their exchange's licensing status before stricter rules take effect.

According to ESMA, any entity providing crypto-asset services to EU clients without a MiCA license will be in breach of EU law and must cease offering those services. This is not a grace period extension, it's the end of one.

The low firm count has concentrated volume around licensed platforms, with approximately 70% of EU-based crypto transactions now occurring on MiCA-compliant exchanges. Administrative fines under Article 111 can reach €15 million or 12.5% of annual turnover, whichever is greater, for non-compliance.