MiCA Transition Ends 1 July: ESMA Orders Unlicensed CASPs to Wind Down

ESMA has publicly instructed unlicensed CASPs to wind down before the MiCA transitional period expires on 1 July 2026. After that date, national grandfathering arrangements lapse and only firms holding a MiCA authorisation from their national competent authority may continue to provide crypto-asset services in the EU. Authorised operators face indirect exposure: any service provider, venue or counterparty that remains unlicensed after 1 July is operating without a legal basis, creating settlement and counterparty risk. Firms should audit their third-party relationships now and confirm the authorisation status of each material counterpart. CASPs still in the authorisation pipeline should seek urgent clarification from their NCA on interim operational status rather than assuming continuity.