MiCA July 1 deadline could leave 10 million crypto users searching for a new platform in the EU
Key takeaways
- The consultation runs until Sept. 28, after which the methodology will be finalized.
- Europe was thought to have had more than 3,000 registered virtual asset service providers (VASPs), the pre-MiCA categorization, as of 2024.
- The immediate impact will fall on customers whose exchanges are withdrawing services, Fazel told CoinDesk
The latest deadline implementing the EU's crypto rules are forcing dozens of exchanges to halt or restrict services, with the European Securities and Markets Authority (ESMA) warning that crypto-asset service providers operating without a MiCA license after July 1 should wind down their businesses while helping customers move to authorized providers or self-hosted wallets.
The deadline also comes as the European Banking Authority (EBA), which directly supervises significant stablecoin issuers under MiCA, proposed a framework on Friday that would allow fines of up to 12.5% of annual turnover for major issuers that breach the regulation. The consultation runs until Sept. 28, after which the methodology will be finalized.
Europe was thought to have had more than 3,000 registered virtual asset service providers (VASPs), the pre-MiCA categorization, as of 2024. As many as 80% of them will not continue after the deadline, Erald Ghoos, CEO of OKX Europe, told CoinDesk.