ESMA Orders Unauthorized Crypto Firms to Wind Down Before July 1 MiCA Deadline in 3 Days

According to the European Securities and Markets Authority (ESMA) on June 23, unauthorized crypto asset service providers (CASPs) must halt new EU client onboarding and prepare orderly market exits before the Markets in Crypto-Assets Regulation (MiCA) transitional period ends on July 1, 2026.

Unauthorized providers must immediately stop onboarding new EU clients, marketing services, and soliciting customers. They should limit operations to activities necessary for existing clients to sell, transfer, or close positions before operations cease, while maintaining compliance with anti-money laundering and transaction monitoring requirements. ESMA stated that clients should verify whether their provider appears in the ESMA Register and consider transferring assets to MiCA-authorized platforms or self-hosted wallets. The regulator plans coordinated enforcement action with National Competent Authorities, the European Banking Authority, and the Anti-Money Laundering Authority against unauthorized providers continuing operations after July 1.