The European Union's Markets in Crypto-Assets Regulation (MiCA) completed its transition period on July 1 and officially took full effect. As of this date, service providers must obtain authorization as a Crypto Asset Service Provider (CASP) in accordance with MiCA rules to legally offer services in the European Economic Area (EEA); through the passporting mechanism, service providers only need to obtain a CASP license from any EU competent authority to provide services across the entire EEA.
CASP Passporting Mechanism: Obtain a License from Any EEA Member State to Provide Cross-Border Services Across the EU
Under MiCA rules, exchanges, custodians, brokers, and other crypto asset service providers need only obtain a CASP license from any EU competent authority to offer services throughout the EEA via the passporting mechanism, without having to apply separately to each member state.
This mechanism replaces the regulatory inconsistencies previously caused by individual member states' different regulations, aiming to reduce cross-border operational uncertainty and make it easier for CASP-licensed providers to establish partnerships with banks, payment institutions, and other financial entities.
Authorized Service Providers Under MiCA and Market Adjustment Dynamics
According to reports, as of July 1, 2026, the following service providers have obtained MiCA CASP authorization, primarily covering the following categories:
Authorized: Coinbase, Kraken, Bitstamp, OKX, MoonPay, Bitvavo
Withdrawn Application: Binance withdrew its MiCA license application before the July 1 deadline
Pending Review: Some companies are still awaiting review by competent authorities
Business Adjustments: Some platforms that have not completed applications have begun restricting certain products and services or withdrawing from some EU markets
The market generally believes that MiCA helps reduce cross-border operating costs for large providers while raising the compliance threshold for new entrants into the European market.
Stablecoin Regulation: ART and EMT Issuers Must Comply with Capital Requirements, Reserve Management, and Disclosure Rules
Under MiCA rules, issuers of Asset-Reference Tokens (ARTs) and Electronic Money Tokens (EMTs) must comply with capital requirements, reserve asset management, redemption mechanisms, information disclosure, and corporate governance standards, and are subject to ongoing supervision by competent authorities.
MiCA's comprehensive regulatory framework for stablecoins is a key component of this regulatory reform; the EURXT euro stablecoin issued by CACEIS on the same day (July 1) falls under the EMT category as defined by MiCA.
Trading Platform Compliance Requirements: Market Abuse Prevention, Client Asset Segregation, and Information Security Mechanisms
Under MiCA rules, trading platforms and other crypto asset service providers must establish market abuse prevention systems, conflict of interest management mechanisms, client asset segregation requirements, risk management frameworks, and information disclosure mechanisms, while strengthening information security and operational governance; overall regulatory standards are gradually approaching those of traditional financial markets. MiCA also requires service providers to establish more complete internal control and operational management systems to enhance market transparency and investor protection.
Areas Not Fully Covered by MiCA: DeFi, Certain On-Chain Protocols, and Non-EEA Service Providers
According to reports, industry areas not yet fully covered by MiCA include decentralized finance (DeFi), certain on-chain protocols, and non-EEA service providers. These may be further addressed through subsequent legislation or regulatory guidance in the future.
In addition, the UK, Hong Kong, Singapore, Japan, the UAE, and Taiwan are all continuing to advance digital asset regulatory frameworks; the US Congress is reviewing market structure bills such as the CLARITY Act, aiming to establish a federal-level digital asset regulatory framework.
Frequently Asked Questions
How does MiCA's CASP passporting mechanism work?
Under MiCA rules, service providers need only obtain a CASP (Crypto Asset Service Provider) license from any EU competent authority to offer services across the entire EEA via the passporting mechanism, without needing to apply for permission from each member state individually.
Which service providers have obtained MiCA authorization, and which have withdrawn their applications?
According to reports, as of July 1, 2026, Coinbase, Kraken, Bitstamp, OKX, MoonPay, and Bitvavo have obtained MiCA authorization; Binance withdrew its MiCA license application before the deadline, while some service providers are still awaiting review by competent authorities.
Does MiCA cover DeFi and decentralized protocols?
According to reports, DeFi, certain on-chain protocols, and non-EEA service providers are not yet fully included in MiCA's regulatory scope, and may be further addressed through subsequent legislation or regulatory guidance.
